Mortgage question

[emc]

Hi all

just wondering if anyone can answer my query? I have been with the same mortgage provider for about five years now and I want to take some extra money out for home improvements (I have a lot of equity so a low LTV, which is great, know I'm lucky!) The only problem is that when I initially took out the mortgage my income was higher than it is now and allowed me to get the level of mortgage I needed. However now my income is lower so that if I applied for a new mortgage now I probably wouldn't get it (I've just moved products over the years and they've never asked me any questions about my income)

Anyway, my question is that, in order to borrow the extra on my mortgage (about ?10k) I'm assuming that they will have to do all the income checks on me - now I know this might mean they refuse to give me a further advance but could it also mean, now that my circumstances have changed, that they can take my mortgage off me? Or once you're in a product and paying it with no problems (I've had a mortgage for 16 years and have never even made a late payment)they wouldn't do that? Not knowing the answer to this (if indeed there is a uniform answer) means I'm too scared to call them about a possible advance.

Any advice greatly appreciated.

thanks

[egoode]

Why don't you speak to a mortgage broker and get their view on it. Given the new Mortgage Market Review rules that are making it harder for people to get mortgages and remortgage they might be able to give you a view as to whether you are likely to get a mortgage at the amount you want.

[Mustard]

You could always take out a loan for ?10k, Sainsburys are doing ones with fairly low rates. You need to have a Nectar card.

[KidKruger]

emc - I called recently about borrowing extra dosh for some building work/improvements, the lender said it would be either a new mortgage or extension to current mortgage amount, but the full checks etc. would be necessary either way.

The lenders are under stricter rules these days.

If you're stuck though and need a mortgage advisor, PM me as I have a guy I've used for years and he's solid.

Good luck.

[emc]

Thanks all for the answers so far - I guess my biggest fear is not that they won't give me the extra ?10k - it's that they might take my existing mortgage off me when they know about my reduced income. Even though am paying regularly with no problems at all and have a low loan to value. Guess i should just ask a mortgage adviser. Cheers all

[KidKruger]

You can always call your lender as an initial enquiry, just say you want to know what the process is so you can start getting your documents together - you don't have to provide information just to ask how it works.

[Alan Medic]

I would say the bottom line is how much in total they are prepared to loan you on the basis of your income. If it exceeds your current borrowings then the difference is how much. As for taking your current mortgage off you I don't know how they could do that given your payment history.

Why don't you try their website as a potential new borrower and see what results you come up with?

[Twirly]

On what grounds would they be able to "take the mortgage off" you if you are making the repayments? If you were defaulting, then they would have a case, but otherwise, I am not sure they would be able to. (i don't know, just can't see it) That would mean them forcing you to sell the house for no good reason

To see how you would stand to borrow the extra, put your total borrowing requirements and your current incomings/outgoings into their website and see if they would lend to you. If not, then there is probably little point in approaching them anyway. Good luck!