Criteria for Mortgages

[barrowd]

We currently have a mortgage of about 375K with EBS. I also have a Credit Union Loan for 25K. I want to remortgage with an LTV NIB Mortgage, rolling the two of them into one. I recon I will just make the 80%, as the house should be worth around the 500K mark. I am doing it to reduce our monthly outgoings, as we are struggling with both repayments, and rolling them into one will reduce my outgoings by about 500/m.
My problem is that by the end of the month, we are well into the red, to the tune of 5K. At the moment we have no means to reverse this trend.
Both our wages brings this to zero again at the start of the month.
We have never missed a payment, and are getting by, but will this come against us when we apply to NIB?
Bear in mind that I intend to use the 500 that we will save each month to get us back into the black, so in theory with the new mortgage we should be good in about 10 months.
Will this fly with NIB?
Thanks...

 

[DerKaiser]

Depends on your joint income. 80-100k should be enough to get you a €400k mortgage. Savings would have helped but aren't the be all and end all, especially as you're only looking for an 80% mortgage.

What rate are you paying EBS? Hard to see where the €500pm savings will come from unless you're also extening the term?

Alternatively you could tell EBS you're going to switch unless they put you on a lower rate - plenty of other people seem to have done this

 

[slinky]

I would recommend speaking with the EBS and advsing them of your situation and ask if a payment holiday could be arranged. This would extend your mortgage period by a few months but allow you to save the money you would have otherwise spent on the mortgage.

No bank wants to see a borrower go to the wall and they will appreciate you taking the first steps to resolve the problem. Remember it only takes one issue such as an unexpected bill to push you further into the red.

Dont see remortaging are an escape when it isnt and you really dont want to risk negative equity.