Our quest to move to a new area all seemed to be going well - we put our house for sale and had some interest and an offer that is within 10% of the asking price which we accepted. We have now found a house we like and put in a provisional offer which has been accepted. New house is similar price to existing house - £500,000. So far all good. Yesterday I rang the bank to talk about the mortgage only to be told that they wont lend us the full amount we need even though we wont be increasing our existing mortgage amount - is there anything we can do ?
Our exisiting mortgage is for around £175,000 which we have been paying off at a rate of £1,500 a month (approx £200 overpayment) with no problems. Now we have dropped to one income and have been told we can only borrow £168,000 with repayments of approximately £1,200 a month. We can at a push find the missing £7,000 but we had reserved that for improvements to the new house etc.
I wonder is it worth talking to the bank mortgage adviser again or will it be the same computer says no outcome? I know we could switch to a different lender but we would then face an early repayment penalty. Anything we can do?