Will I get a Mortgage?

Mortgage advisorIf you’ve been reading my previous posts you’ll be well aware that I have been trying to get a mortgage for the last few weeks which has been made no easier by the fact that I am already named on an existing mortgage. To cut a long story short I brought a house six years ago with my parents and we re-mortgaged their house to raise the money to buy the new house so I am listed on that mortgage and the deeds to their house. Now I’ve only been speaking with one mortgage lender (the one the existing mortgage is with) and they have told me that it’s not possible to get another residential mortgage and I will need to come off the other mortgage first before I can progress with any new mortgage with them. So the question I’ve been asking myself for the past few weeks is will I get a mortgage?

My dad (Harry Snr) gave me the phone number for an independent mortgage advisor who he was recommended by a friend and I had a good conversation with her yesterday and she thinks I can get another mortgage no problem. She said there are lenders that will only take into account the mortgage payment not that fact that I actually am listed on another mortgage. Fortunately the payment on the existing mortgage is very low, helped along by the bank of England base rate being at historical lows for the past five years.

So the independent mortgage advisor recons that I should be able to get an agreement in principle and then apply for the mortgage no problem. She’s going to call me on Wednesday morning to take all my details and then goto the lender to get a decision the same day, therefore by the end of Wednesday I could be in a position to put an offer in on the new house that we are looking to buy.

The interest rate of the new mortgage is slightly higher at 3.15% instead of 2.75% with my existing lender (both fixed for two years) and the arrangement fee is also slightly more at £242 instead of £199. So in total I’ll (roughly) be paying an extra £472 over the two years plus the extra £43 in fees giving a total of £515. This is about the same that I would have to pay to come off the existing mortgage (£150 fee + Solicitors fees of around £400) however it’s a lot less hassle at the moment and we should be able to get things moving much quicker. We need to get this all sorted and hopefully have the new house signed for and ready to move in my mid to end October as the house we currently rent is up for renewal then. We may be a bit optimistic with time scales but if it’s a few weeks late we can always move into my parents house for a few weeks while everything completes. They live just round the corner so it will be nice and convenient.

I guess I’ll just have to wait and see what the mortgage advisor comes back with tomorrow and go from there. I think if I get turned down then we will just have to move back into the house we already own but that is a last resort in my eyes as it’s making money and I don’t really want to lose out on that extra income. As always time will tell with these things. (He says with his fingers crossed).

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