another remortgage question

[pd2006]

Hi guys

Herself and I have a house valued at around 375K - 400K,
we have a mortgage of 244K along with savings of 15K. We have never missed a payment on our mortgage since we took it out in sept'04 and have a good credit rating as far as we know with no loans out.
We are both in full time employment but we get paid weekly by cheque which we always get cashed at our local corner shop as a result of this we have crap bank statements with the odd unpaid. we want to remortgage to get some work done to the house for 50K will we be able to do this or will been paid by cash go against us?

 

[ClubMan]

We are both in full time employment but we get paid weekly by cheque which we always get cashed at our local corner shop as a result of this we have crap bank statements with the odd unpaid.

I don't understand this - what goes unpaid, when and why has being paid by cheque and cashing them in the local shop got anything to do with this?

we want to remortgage to get some work done to the house for 50K will we be able to do this or will been paid by cash go against us?

It didn't seem to go against you when getting the mortgage in the first place unless your circumstances were different then?

 

[PM1234]

Cashing cheques locally results in the lender being unable to look at a financial 'trail' for want of a better word of your incomings, outgoings and other financial commitments. This in turn affects your credit rating.

However unpaids suggest you lodge some money to your bank account? Obviously if the money isn't in your account and cheques/direct debits bounce, this also affects your credit.

In your favour you can provide evidence of savings, payslips etc and you have equity in your home.

 

[LDFerguson]

The fact that you get paid by cheque and don't always lodge the cheques won't go against you on a re-mortgage application, provided that there are other forms of proof available of your income, e.g. payslips, salary certificate from your employer and P60.

Bounced transactions on your current account statement can cause problems with a re-mortgage application, depending on how frequently they occur. But evidence of savings should help counter these. Most lenders look for three months' current account statements and some don't always look for current account statements. Have there been unpaid items in the last three months? If not, you should have no problem based on the information you've posted.

Liam D. Ferguson
www.ferga.com

 

[Trish2006]

we had a couple of unpaid mortgage payments on our mortgage when we went to top up. 2 were the fault of the bank we were with so we changed banks after the 2nd and said this when looking for the top up. The third was a problem with the mortgage lender themselves.
These were explained at the time but no notes were taken of it, so I can't imagine they were followed up for verification. At the end of the day, our general credit history and payslips indicated that we were not a default risk so there was no problem.