Help needed with mortgage

LisaMarkand_Oliver

I'm after a bit of advice really about what to do.
We are just about to put our house on the market as we are planning to move.
We are putting our house up for £185,000 we have a mortgage of £100,000 and a £7,000 further advance.

The house we would like to buy is on the market for £300,000 and we wouldn't want to pay more than £270,000.

I earn £27,000 and my partner (currently on maternity leave until Nov 08) earns £22,000. We have combined savings of £14,000

She will be returning to work part time (3 days £14,400 or 4 days £19,500)

We are in a fixed rate mortgage with nationwide 2 years remaining of a 5 year term.

We have no other debts,ie credit cards or loans the only money we owe is the mortgage - nor have we ever owed money in the past

Nationwide won't lend us enough if my partner works 3 days which is the ideal situation.

Does anyone know of any other mortgage lenders that will lend us enough based on my partner working 3 days and would we have to pay penalties if we move from nationwide?

This will be our last house move and have 20 years on our mortgage left which we may look to increase

Thanks for any advice

herbiesjp

What amount of deposit are you going to put down?

What mortgage amount do you need?

LisaMarkand_Oliver

Sorry,
We want to put down a £75-80,000 deposit
So will need a mortgage of approx £190,000

confused31_2

I would try and sell your house first as nothing is moving unless the price is well below other prices of houses in your area.

I reckon you will need a mortgage of about 190,000 pound and that works out about 1400 pound a month over 25 years.

I personally think you will struggle to pay that ammount each month with other bills aswell, i earn about 27,000 pound a year and my missus woorks 3 days a week and earns about 12,000 and i know theres no way i would be able to pay that much a month, and live without any worries.

you will need to put away 350 pound a week just to pay the mortgage, and if like me you spend about 100 pound a week on shopping aswell as fuel,mot,road tax, gas and electric, council tax, water rates, insurances, phone bills,tv and other things.

i would write everything down, what you pay out now and see how much you will have left afterwards, its okay someone lending you the money, with a deposit of 80,000 pound they know they will get their money back, if you get repossessed.

All it would take would the interest rates to go up a bit and it would really mess everything up.

confused

herbiesjp

The problem you have is that you are tied into Nationwide for a further 2 years.

So to leave would mean paying a penalty - which I assume would come from your sale proceeds, which would lower your despoit amount, and increase the mortgage amount further, needing higher multiples with the other lenders

So it look like your best option would be to port the current deal, top up with a new deal from Nationwide that will expire around the same time as your current deal - and then review your options at that point

If you really want the property you may have to look at the 4 day PT work initially and then review at a later date

LisaMarkand_Oliver

confused31 wrote: »

I would try and sell your house first as nothing is moving unless the price is well below other prices of houses in your area.

I reckon you will need a mortgage of about 10,000 pound and that works out about 1400 pound a month over 25 years.

I personally think you will struggle to pay that ammount each month with other bills aswell, i earn about 27,000 pound a year and my missus woorks 3 days a week and earns about 12,000 and i know theres no way i would be able to pay that much a month, and live without any worries.

All it would take would the interest rates to go up a bit and it would really mess everything up.

confused

We wouldn't struggle, we have worked out all our finances, and are lucky that we can easily afford that amount of money (my wages will cover the mortgage, and all the household bills, council tax food etc) my partner eventually in the next 2 years will be returning to work full time anyway.

And yes our house is priced under the asking of similar ones - we are just trying to get an idea of mortgages and advice before sell ours

LisaMarkand_Oliver

herbiesjp wrote: »

The problem you have is that you are tied into Nationwide for a further 2 years.

So to leave would mean paying a penalty - which I assume would come from your sale proceeds, which would lower your despoit amount, and increase the mortgage amount further, needing higher multiples with the other lenders

So it look like your best option would be to port the current deal, top up with a new deal from Nationwide that will expire around the same time as your current deal - and then review your options at that point

If you really want the property you may have to look at the 4 day PT work initially and then review at a later date

Thanks for the advice - what sort of fees would nationwide impose if for example we did want to move the mortgage to another lender?

herbiesjp

That would be listed in your mortgage offer letter - in section 10.

To get an exact figure, you would need to call Nationwide though

confused31_2

The reason the nationwide wont lend you the money is because they dont believe you will be able to pay it back the loan with the money you both earn.

Obviously if your lucky enough to afford it go ahead,but just be careful, i wouldnt like to see you on here in a few months in a right mess because youve over borrowed

Its okay saying yor wife will go back full time, but does she really want to be a full time mom as well as working full time?

Im with the nationwide and if they wont lend you the money you will have to pay the redemption fee, then move to another lender, and to secure a low rate with another lender you will have to pay a large fee.

confused

confused31_2

LisaMarkand_Oliver wrote: »

We wouldn't struggle, we have worked out all our finances, and are lucky that we can easily afford that amount of money (my wages will cover the mortgage, and all the household bills, council tax food etc) my partner eventually in the next 2 years will be returning to work full time anyway.

And yes our house is priced under the asking of similar ones - we are just trying to get an idea of mortgages and advice before sell ours

im not being funny but you say your wage would cover the mortgage, food household bills, council tax but it would be very tight if you only earn 27,000 pound a year.

It works out about 520 pound a week, your mortgage over 25 years would be 350 pound a week but thats at low interest rates now.

Then say you spend 100 pound on shopping maybe this might be a bit high but the average person spends about this much, this would take it up to 450.

Then you have got council tax which i suspect would be about 1500 pound a year for a house worth 300,000 and also i would say gas and electric 1500 pound for the year.

Just with these 3 things it would have swallowed up your 520 pound a week which is what 27000 pounds works outover 52 weeks

I dont think youve worked your sums out correctly, then if youve got what the average family have a Car, fuel,tv license, water, sky, telephone, mobile phones, life insurance, accidental insurance, car insurance,road tax, mot,

So even if i work it out that youve got no car and you use public transport and you dont have a tv the other bills on top are about 30 on top at least.

You would be spending well into your wage aswell has your missuss wage on the figures you have gave.

Am i the only one seeing this with the figures he gave or am i really confused?

confused

drbeat

confused31 wrote: »

It works out about 520 pound a week, your mortgage over 25 years would be 350 pound a week but thats at low interest rates now.
confused

Confused, you'll find that after tax the OPs salary works out to £390.72 a week. So thats approx £160 spare a month for the bills...I'm confused too? Mortgage must be over 35 years or something like that.