Remortgaging when income down and outgoings up! Can it be done?

[WhatsHoppening]

I would really appreciate some advice!
Our current mortgage term ends in December and I’m aware the new rates aren’t as good so I’m a bit nervous and starting the process now (have a mortgage broker appointment booked).
We have around 355,000 on the mortgage (60% LTV on our house). When we got this mortgage I was working 28/hours a week and we had one child in nursery (30 free hours) so were doing ok financially. Since then we have had another and now I work 21/hours a week and have one child in nursery (1000 a month) and one in wraparound (cheap!). We have a lot less disposable income but we manage although have dipped into savings (only 4K so nothing crazy) for car issues etc as not loads left each month.
We have obviously paid the mortgage for 2.5 years (3 year term) without issue, I am starting working an extra day from this month (although after childcare only gives us an additional £150 a month) and DC2 will get 30 free hours 4 months after our remortgage.
When I do a brief affordability checker online it basically says currently we wouldn’t be lent the mortgage that we have. Can a mortgage broker still organise a new mortgage for us? I don’t want to default to the standard rate as it’s +++ and would much prefer a fix for peace of mind.
Sorry this is long- thanks!

And to add 29 years left on term.

Would you be able to struggle through on the standard variable rate for 4 months and then fix again when your free childcare kicks in ?

What new mortgage amount do you need? Surely house has gone up in value and you've paid some mortgage off so surely you need to borrow less than last time?

Your current mortgage provider will write to you 3-4 months before your deal ends with the following options in all likelihood -

1. choose online from a range of new fixed deals which will all be higher than what you’ve got now given way things are going
2. offer You chance to have an appointment with them again to go through finances to choose new deal (where you might get caught out as you predict)
3. or suggest you see a broker. Where you may also get caught out as you say.

your options are to accept one of the new fixes they offer, or go on SVR for 4 months till affordability changes and then apply for fix.

And yes this too. When you say 69% LTV I take it you’ve used the house value as it stands now for et as decreed by the nationwide HPI index for example and aren’t working off whatever you bought it for 3 years ago?

Are you able to get a new product with the same lender rather than a full remortgage? You shouldn't need to go through any financial checks if not changing your borrowing.

@Lazypuppy sorry that’s what’s left now- a lot less than 3 years ago!
@Beaucoup yes 60% is current LTV with increase in value.
Thanks all- I’ve looked online and we can remortgage with current lender without further checks which may be our best bet but the options are crap (paying a fair amount more than now) and I just wondered if having more options of providers might get us a cheaper deal although I guess it’s going to be more even with better LTV and more equity due to higher interest.
Good thought re: going to SVR for 4 months then remortgaging- I’d been trying to avoid it at any cost as it seemed high but long term if we get a much better deal could be better. I’m just nervous the longer we leave it the higher rates will go.

I spoke to a mortgage adviser this week as also worried about rates going up and he said they’re predicted to go up towards 2024 and then start coming down. So might just be a temporary squeeze - not ideal, but not as doom and gloom as the media might have you believe.

@Peach777 thats interesting (and hopefully true!) we were planning on a 5 year fix but perhaps if the rates are v expensive only committing to 2/3 years might be better if they may come down in future. So hard to know what to do!

You could try a few AIP as they will tell you how much a bank is willing to lend based on income & outgoings.

Our bank accepted reduced childcare costs even though we only got the free 15 hrs a couple of months after the start of the mortgage. Maybe a broker would knoe which lenders are flexible like this?

@Callisto1 good idea- I have done some AIPs with our current situation and they wouldn’t lend but haven’t tried with our ‘new’ situation ie the cheaper childcare. I’ll see what the mortgage provider says, on the money supermarket comparisons etc there were much cheaper monthly payments with different lenders but just depends if we would be accepted!

If remortgaging with a new lender you will need to meet the affordability criteria of a new borrower so might not work for you.

Might be worth checking what penalty would be payable now if you broke your existing fixed rate assuming your now lender has new fixed rate options that you might be able to avail of instead of waiting for December. If penalty is large then obviously that's a non runner but if low might be worth it.