Can I raise money on my house when I am unemployed?

Posted on 3 August 2007

Hi Katie

At present my mortage is with B&B and it is for £110K, I recently had a walk through valuation and was told it was worth between £450 and £500K. I would like to raise another £90K but for reasons that I won't go into I am unemployed at present.  Would this make a difference?

Frank


Unfortunately, yes.  You would need to evidence a total income of around £50,000 to support a mortgage of £200,000. All the while that Bradford and Bingley don't know, your existing mortgage should be fine as long as you are making your payments in full and on time.  However, they would be reluctant to lend you more, unless you can show £50,000 from sources that they deem acceptable.
 
If your benefit or insurance policy income is high enough you might be best to remortgage to a lender who can use it:  The most generous lenders that take benefits into account are Accord, and Norwich and Peterborough.  Others to try would be Leeds, Co-op, Halifax, Abbey, Cheltenham and Gloucester, Clydesdale, GMAC, BM Solutions and Alliance and Leicester.
 
Your property value is good so if your replacement income is high enough your other option is to self-certify the income that you receive from varying sources. 
 
Katie

Category: Remortgaging, Self-certification, Valuations, Freehold, leases & unusual property

 

Answers provided in response to Ask Bea are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not neccessarily represent the views, positions, strategies or opinions of Charcol Limited. All comments are made in good faith, and neither Charcol Limited nor Bea will accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

Question