Due to illness I now earn a lot less. Would my lender allow me to move to a new house to renovate ?

Posted on 16 August 2014 by Victoria

I have a property valued at around £260k and have a mortgage of £87k. I suffered from breast cancer last year so I have changed my job and earn a lot less but can afford my small mortgage. If I sold my property and wished to move the existing mortgage to another property to renovate would the mortgage company still lend me the money even though my circumstances have changed?


I'm afraid that all lenders would make an assessment on the mortgage you are looking for based upon your current circumstances. On the 26th April the regulator introduced new rules on affordability under its Mortgage Market Review (MMR), so you would need to meet the affordability criteria for your current lender. However, each lender takes a slightly different view on affordability, so it may well be that even if your existing lender says 'no', then there could be alternatives.

One thing to consider, is that you mention buying a property to renovate? If there's too much work to do, then the mortgage valuer may recommend to the lender to issue a retentation (hold back some of the funds) until some of the more essential works have been carried out. So you should be cautious about looking at property that requires too much renovating.

If you'd like to discuss your options in more detail, then please contact one of our consultants on 0344 346 3672 and they'll be able to give you an idea of how we can help.



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