Mortgage borrowing advice??

[sweetkitty]

Can I ask the wisdom of mumsnet a question?

We have a mortgage tied into a 2 year discount tracker rate ending in August with the Nationwide, we also have loan secured against the house, when we sell the house we will be left with 30K equity (once the loan is payed back in full) For our new house we want to borrow 25K less than the value of out house at present (as we are relocating) now the sticking point is we want to basically have the same mortgage as we have now but they won't lend us this much as I am becoming a SAHM (on maternity leave now) but as I am on maternity leave I havea letter staing I will be returning to my job full time in July but this job is in London and we are moving to Scotland.

We know we can afford the repayments as they are the same as our mortgage right now and we won't have the loan repayments when we move. We are only wanting 18K more than they are willing to loan us.

Is there anything we can do I've cut and paste this from another thread any advice appreciated.

The estate agent has come back with an offer but it's way too low today we are in negotiations!!!

[northerner]

Can you get a self cert mortgage?

[Gobbledigook]

Northerner - what is this self cert mortgage? You've mentioned it a couple of times.

[galaxy]

Have you tried speaking to your existing lender though or are you trying a new lender. I would have thought the Nationwide should be more accomodating than this

[sweetkitty]

Have only spoke to the Nationwide over the phone and the bloke said you can only borrow 82K that's it!

We are still tied into this 2 year tracker until August so to move mortgages would incur a fee.

[Mothernature]

Speak to an independent mortgage advisor, your Estate agent should know a 'good' one and they should be able to help, new legislation that came into force late last year has altered a lot of things so get it checked out.

or try here

[northerner]

With a self cert mortgage you can borrow pretty much anything without providing proof or earnings as long as you have a 25% deposit - not sure if this applies to you?

[sweetkitty]

yes we will have a 25% deposit

don't you pay higher interest rates with a self cert mortgage but is that part and parcel

could I say I am returning to work in July as at present I am due to (or is that illegal)?

[Gobbledigook]

Northerner, yes it applies to me but how do you go about it?

Sweetkitty - whose to say you havent' every intention of going back to work when you get the mortgage and only later decide not to?!?! My friend moved house this summer, got a mortgage based on 2 salaries and has now given up and is around £20K pa short! She wouldn't have got that mortgage if she'd not been working and she didn't know she was leaving work till after the mortgage was sorted.

This is why the income multiplier rule really gets on my nerves and it should really be about affordability. I've got friends who have 'salaries' and work 3 or 4 days a week but are actually much worse off at the end of the day than I am because I work freelance and have no childcare costs where they spend most of their earnings on nursery. However they can get a mortgage they want just like that, from providing pay slips and not even having to justify how much of it is left at the end of the month!!

[otto]

You do need to talk to a mortgage broker as they have access to deals not always available direct. There are some lenders such as Abbey that will loan based on ability to repay rather than multiples of income and a broker will have details of these. Self-cert might be an option, but generally the interest rates charged can be higher than on standard mortgages.

[sweetkitty]

thanks

WE'VE SOLD THE HOUSE!!!!!

I don't know if the Nationwide would go for it so to speak as the house we will be buying is 450 miles away from my place of work but surely as the unhelpful bloke stated they take into account your circumstances when you apply for the mortgage and that is that I'm going back to work. I knwo people who got a mortgage then get made redundant 2 months afterwards.

I'm not looking for loads more (I was the higher earner so if my income was taken into account we could well afford it) only 18K. It would just give us a bit more when looking at properties.

I am planning on going back to some kind of work in the future as well.

[katzguk]

i'd shop around for a mortgage in all honesty have you tried themarketplace.com its very quick and easy and will tell you who will lend to you and at what rate.