remortgage confusion

[3kids2cats2dogs]

hi, we mortgaged 2 years ago with a new company through simply finance so we could build a ground floor bedroom as my husbands disability is getting worse and can not manage the stairs, all went through smoothly, however we contacted out lender directly last week, to mortgage a little bit more to get some work done on the house, we went through all the figures and were turned down infact we were told we should never have got the mortgage in the first place !!....the mortgage lender stated that on their paperwork my husband actually worked for the DLA not in receipt of it, we contacted simply finance and they state their paperwork clearly states in receipt of DLA, we took out a low start on the advice of simply Fianace after being told that we could apply for a new mortgage with low start at the end of the fixed term, now we are stuck as simply fiancé now say we can not get another mortgage, the fixed low start has now ended and its gone up by 112.00 per month, so confused, upset and extremely worried that we are not going to be able to keep up the new rate payments

If Simply Finance and your lender have arranged the mortgage between with the wrong information about your DH being a DLA employee vs recipient, I think it has been missold. The 'low start' element sounds like an introductory fixed rate which expired after 2 years - normal. For Simply Finance to have said you could apply for a new mortgage with low start I think they meant you would have to remortgage with another lender offering another introductory offer. Was that not explained?

I think you should talk to Citizens Advice Bureau or even the Fianancial Services Ombudsman because it could be that you've been sold an inappropriate product and given false expectations & information by Simply Finance. I'd also recommend you talk to an independent financial/mortgage advisor (not Simply Finance) about whether you can move your mortgage to a new lender entirely. See if they have any ideas.

If it turns out you don't qualify for a mortgage with anyone else because of the DLA element you may find that the best outcome is to stay with your current lender and what I assume is their Standard Variable Rate?

But any mortgage can go up & if you can't afford that how can you afford to borrow even more!!??

I think the OP was hoping to take out the extra borrowing at the 'low start' introductory rate, but it's a fair point. Interest rates are historically low at the moment so, if an extra £112/month is a problem now, it would be really difficult if interest rates went up as well.