Net worth

[Twinkletoesmagee]

Is this used for anything and how is it calculated?

Our mortgage deals are coming to an end in January. We are currently on very preferable rates but this will definitely change.

Our financial position has also changed significantly since we last remortgaged. We have a good income but we are supporting a DC at uni and two at private school (one has 2 years left and the other 5). We are exceptionally lucky to recieve family money which covers 70% of this cost but I'm worried about these costs negatively impacting us being able to remortgage as our monthly outgoings are very high.

We do have at least 50% equity in two properties with a total value of £600k. My DH is a director and also has a 20% share in a business which is currently valued at around 10 million.

Will these things be taken into account when we remortgage?

Thanks

I’ve not taken a new mortgage out for over 20 years but I would think it’s more about affordability than net worth, that is unless some of that wealth is being used to guarantee the mortgage.

I can't remember about our renewal but when we were applying for our first mortgage they went through our regular payments. At the time we were both paying rent/board to family members we were living with at the time. They wanted to know that these payments weren't going to continue after purchasing the out own house. As they weren't they didn't take them into account when determine affordability.

i believe it's only the income Vs outgoings that they are going to take into account for affordability. Neither when we got our original mortgage nor when we remortgaged did they ask about any savings we had for example. I can't imagine that the properties and business shares will be taken into account unless you are getting an income from them.

If you can demonstrate that the school fees are being covered by separate money I think they are likely to take this into account. I guess they might want to see something to indicate if this is a short or long term commitment from the person contributing to the fees.

affordability is about cash income v expenditure, not what assets you own that could be sold if things got sticky.

If you stay with the same mortgage provider - it’s called a product transfer I think, they won’t do any checks. Been with Santander over 10 years and always got decent rates and it’s less hassle than having to prove affordability with a new provider.