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Penny Outskirts
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sean
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Treacodactyl
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Leonie
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Penny Outskirts
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 Posted: Wed Nov 30, 05 10:06 am Post subject: |
 
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| GardenerJ wrote: |
| We're self employed with a 7 year old mortgage which was taken whilst we were still employed, we recently wanted to borrow more on the mortgage to build an extension, the bank refused us because we only had just under 2 years accounts to show. |
Almost certainly a case of "Computer Says NO" Not all companies are the same, but most don't seem to be able to cope with changes in circumstances, and it has nothing to do with how long you've been with them, or whether you can actually pay the damn mortgage - if you don't fit their system criteria, that's it... Used to drive me nuts when I worked for Abbey, you see a customer in front of you, who you know is fine, but the system won't let you help them.  |
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tawny owl
Joined: 29 Apr 2005
Posts: 563
Location: Hampshire
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| Posted: Thu Dec 01, 05 9:46 am Post subject: |
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| GardenerJ wrote: |
| We're self employed with a 7 year old mortgage which was taken whilst we were still employed, we recently wanted to borrow more on the mortgage to build an extension, the bank refused us because we only had just under 2 years accounts to show. |
That does make a difference. You'd be well advised to get your accounts in asap, so that you do have 2 years to show. Most banks/BSs will be happy with 2 years, although some need 3, and it does work out cheaper than a self-cert. In addition, you've got 7 years' mortgage payments to show, which hopefully show you've been good and paid up regularly on time, which goes a long way with banks too (they'll want to see the end-of-year statements from your present lender). Look on the Moneyfacts website for lists of lenders with different sorts of mortgages: https://www.moneyfacts.co.uk/
As you're both SE, and therefore presumably have tax money held back for a year or so, you should seriously consider a current account mortgage. Just getting your pay put into that, leaving it there as long as possible each month before DDs go out, and keeping your tax money in there could cut down quite substantially on your mortgage term (and consequently the total amount paid back). The interest rates are generally a bit higher, and most mortgage brokers won't recommend them (because they don't get a cut), but they can be very useful for SE people who get a reasonable amount of money paid in that they can leave for a while - the shortening of the mortgage term more than compensates for the slightly higher interest rate. There are only three real CA mortgages available at the moment - Clydesdale Bank, NatWest, and the One account. Any others that claim to be CA mortgages are actually offset, where savings (either in the same account or in a separate one) are offset against the mortgage, but you can't have DDs or standing orders set up from the mortgage account, so you need to move money from one of the accounts into a current account, which can be a pain and risks you incurring interest if the dates don't work out quite right.
The Clydesdale is the cheapest at the moment, and they definitely will consider people with 2 years' accounts. So will the One account - not sure about NatWest. All of them have interest rates at about 5.6%, depending on the amount of the mortgage relative to the value of the property. Would be worth getting a few estate agents round to estimate the current value for you before you contact them.
HTH |
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Not really a concern for me at the moment though, as I've got nothing to prove 
I tried to remortgage a few years ago and couldn't 
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