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mortgage question....do you think we will get it now?

(4 Posts)
ThatVikRinA22 Wed 24-Oct-12 23:50:44

we currently have a mortgage of about £102k and are wanting to remortgage to release 10k equity to do some improvements on the house. (much needed new bathroom, new drive, garage and sort out garden)

we were into an overdraft and on that basis the BS refused our application. So i have now paid off the overdraft (simply sucked it into an existing loan - paying the same amount for another year)

i now have to resubmit bank statements. on paper we can easily afford it. but i am worried - i take a cash sum out of my bank each month and divide it up for all our spending (DH wages pay the bills/mortgage and mine pays food shop and general living expenses)

it looks like we dont have much left each month and i also put savings away each month too. i am worried that now they will look and say no again. i do things in cash so i dont overspend. in reality the 10k on the mortgage only means another £48 a month and we can do that without too much problem.

the broker has said if they refuse again they will jsut go to another lender but that would mean higher % interest.....the skipton BS seem to go through the bank statements with a fine tooth comb and actually seem to judge on what we spend our money on.....

do you think we are likely to get rebuffed again, due to the fact i now use cash and leave only a small amount in the bank? i dont think ive thought this through very well!

financialwizard Thu 25-Oct-12 07:11:01

When re submitting your statements send a covering letter in as well advising what you have written here. I have a similar set up and didn't have a problem.

Tizwozliz Thu 25-Oct-12 07:34:12

How much equity do you have in the house? I think this may have a bearing as well as affordability

ThatVikRinA22 Thu 25-Oct-12 16:15:40

house is currently worth about £135,000 realistically in present market - would take us to about 85% LTV ish.

i was paid today, but had very little left in the bank - i did however have cash in the house.

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