Re- mortgage?

[russell]

So I need to do some work on the house (single storey extension, knock through kitchen etc) as it's tired and we are running out of space. Will cost about 25k.

Had the house valued over the summer and we have £187,000 equity. But Mr Russell is now self employed and so with his declared wage we no longer meet the new 'affordability' calculation even tho we both are lucky enough to work full time.

Should I look to move my mortgage elsewhere as Nationwide are exceedingly cautious? Or is that just silly as we have been with them for such a long time and get a 2.5% rate.

I don't want to make a silly decision, but the state of my downstairs is depressing me.

Advice please and yes ... Stop whinnying woman is valid I suppose...

 

[Rubber Bullets]

Have you spoken to the Nationwide? if the work adds roughly the equivalent cost to the value of the property I'd have thought they'd have gone for it. We did the same with a loft extension and added it to the mortgage, though we were lucky to do this in 2007 just before the crash.

Oh and in other advice, the use, by a lady, of the phrase 'the state of my downstairs is depressing me' on an almost all male forum is brave, if not foolhardy.

RB

 

[russell]

I know... I thought it was amusing. Well it amused me, but thanks RB x

 

[russell]

Yep told lady in branch our joint annual income and she said they wouldn't lend us what we have now!

Really gets to me as I don't want a mansion or flash car or amazing holidays... Just my house to be finished. We both work our arses off too!

 

[Rubber Bullets]

Ha, I didn't think you'd have done it by accident and I did mean to put a smiley.

That is sad though, and yes I would look at moving, there is no harm in asking around, but everyone is so cautious these days. I hope you find some one, that does look like a lot of equity to borrow a relatively small amount against!

 

[Ch3tan]

My mortgage was with nationwide and they were not flexible at all. I'd advise you speak to a mortgage advisor, they'll give you better advise than anyone here can and can at least tell you what products you qualify for.

 

[Tom]

Annoying, isn't it? According to the last place I tried to re-mortgage, I couldn't afford the mortgage I've paid without problems for the last 13 years.

 

[Cadelin]

The point of affordability is that it doesn't matter how much your house is worth more than your mortgage. Banks, aren't allowed to lend to you anymore on the assumption that if you can't repay they will just reposses your house and sell it. The other problems is that self employed carries a large risk for a bank lending because of all the inflated earnings before the banking crisis.

Add you and your husband incomes together and multiply the total by 3. That is a conservative estimate of what you can borrow (I don't know if you have children etc). You might be able to borrow more depending on your exact circumstances. By all means ask around but don't assume it is just Nationwide being too cautious. You might have more luck if you can prove your husband earnings are accurate.

 

[Moriath]

if they won't lend you the money for the extension they are unlikely to lend you more to get a house bigger than you have already seems they stated on your earnings you wouldn't get the mortgage you have now.

As been stated the multipliers are being a lot more strictly I forced now.

And @Tom its not just what you have been able to afford over the last 13 years of historically low interest rates but what could happen if the interest rate went from 0.5 to 7, 8 or higher percentage and your repayment affordability then.

I think it's cheap for an extension and a kitchen plus planning and everything. I just getting a kitchen for 19k ish.

 

[Hawkwind]

No harm in shopping around for a new mortgage.

Current list of the best on offer:
http://www.lcplc.co.uk/thirdparties/thisismoney/mortgages2/home/

 

[DaGaffer]

So I need to do some work on the house (single storey extension, knock through kitchen etc) as it's tired and we are running out of space. Will cost about 25k.

Had the house valued over the summer and we have £187,000 equity. But Mr Russell is now self employed and so with his declared wage we no longer meet the new 'affordability' calculation even tho we both are lucky enough to work full time.

Should I look to move my mortgage elsewhere as Nationwide are exceedingly cautious? Or is that just silly as we have been with them for such a long time and get a 2.5% rate.

I don't want to make a silly decision, but the state of my downstairs is depressing me.

Advice please and yes ... Stop whinnying woman is valid I suppose...

25K? Really? Is that all? Seems very low for an extension. (May be off-topic).

I've just been through mortgage hell over the last few months, but hopefully contracts will be finally signed in the next day or two. The place we're buying has a small kitchen though and we've already been pricing extensions, and when you add in the fitted kitchen itself, no way are we going to get anything near 25K (allowing for the exchange rate etc.) Here in Ireland you probably wouldn't re-mortgage for 25K; we'd go to a credit union, but unfortunately they don't really exist in the UK any more.

FWIW, yes Nationwide are likely to be more cautious than a regular bank.

 

[MYstIC G]

Nationwide, I believe, still being a building society, have obligations to always chase debts as any unpaid amounts belong to the members. I imagine that's why they're tight as arseholes about additional lending. Banks can just write shit off so can take more risk, though most don't.

 

[Tom]

And @Tom its not just what you have been able to afford over the last 13 years of historically low interest rates but what could happen if the interest rate went from 0.5 to 7, 8 or higher percentage and your repayment affordability then.

Interest rates could go to 20%, I'd still be able to repay what's owed. What they didn't seem to understand is that self-employed people keep their profits as low as humanly possible, to avoid paying tax.

 

[Raven]

To be fair, your profit (and therefore income) is the only thing they can go by. If you are manipulating it to make a low profit then you only have yourself to blame.

*And by manipulate I ofc mean claiming everything that you can as a cost, I presume (which is fine)

 

[Moriath]

To be fair, your profit (and therefore income) is the only thing they can go by. If you are manipulating it to make a low profit then you only have yourself to blame.

*And by manipulate I ofc mean claiming everything that you can as a cost, I presume (which is fine)

I think it's more keeping the money in the 'company' and paying yourself just enough to live on.

 

[Scouse]

Interest rates could go to 20%, I'd still be able to repay what's owed. What they didn't seem to understand is that self-employed people keep their profits as low as humanly possible, to avoid paying tax.

Can you not save up a whacking great deposit?

I'm hoping to buy another gaff in a few years time - need to spend the next 12 months clearing debts then 24 months after that I'm hoping to save up enough of a deposit that between me and my missus can buy somewhere nice with a bit of land...

 

[Tom]

Oh I have enough savings to live off for a good 6 months (including business outgoings), and if everyone paid me now, you could make that over a year.

I should just dump it into the mortgage but frankly it's nice having money in the bank. At least I know that if I break a leg I won't starve.

 

[russell]

25K? Really? Is that all? Seems very low for an extension. (May be off-topic).

I've just been through mortgage hell over the last few months, but hopefully contracts will be finally signed in the next day or two. The place we're buying has a small kitchen though and we've already been pricing extensions, and when you add in the fitted kitchen itself, no way are we going to get anything near 25K (allowing for the exchange rate etc.) Here in Ireland you probably wouldn't re-mortgage for 25K; we'd go to a credit union, but unfortunately they don't really exist in the UK any more.

FWIW, yes Nationwide are likely to be more cautious than a regular bank.

It's only a single storey conservatory type thing and then to knock through kitchen into dining room to make it one bigger room.

 

[russell]

And I have good friends who know good people... Just not the money it seems

 

[russell]

I want to be Tom.

 

[russell]

Interest rates could go to 20%, I'd still be able to repay what's owed. What they didn't seem to understand is that self-employed people keep their profits as low as humanly possible, to avoid paying tax.

I want to be you Tom.

 

[Ch3tan]

Ginger and angry?

 

[Edmond]

I want to be you Tom.

You need to get a bike too

 

[Moriath]

You need to get a bike too

A child sized one?

 

[Tom]

Ginger and angry?

Could be worse.

 

[Moriath]

Could be worse.

View attachment 21277

Yup could be just ginger