Some advice re moving house & mortgage

hd7481

Hi there,

We are going to look at a house today that i suspect has been on the market for a long time (since last summer) and is on at O/O £112k. Of course there will probably be a reason for it being on so long.

Anyway, our current property has approx £56k outstanding on the mortgage.
Hubby earns £20,000 with bonus of at least £400 a month. I am a student but my dad is still (generously) giving me £250 a month towards my living costs.

Basically when we got our property valued in Nov they said they weren't sure what it would sell for, to put it on the market at high 70's and hope that it would sell for high 80's maybe even break into the 90's as its a 1 bed and lots of first time buyers out there.

Would we be stupid to try to get a mortgage for this place if we like it and the survey comes back ok. We are yet to speak to a mortgage adviser as we are not sure if we are kidding ourselves.

Thanks in advance.

dwsjarcmcd

hd
Really depends on what price you get the house for! If it has been on the market for 9 months, the vendor is unlikley to get anything over the asking price, so if you get itfor say £100k (which is where I would start) and even paying up to £112k, you should still be ok.
With you husbands salary and bonus you should easily get a £90k mortgage (£22.5k x 4 i.e salary plus 50% of bonus assuming they are not guarenteed) plus say £24k equity makes £114k.
Obviously this assumes that you have a good credit history, not too much on credit cards and loans etc and remember you will need money for fees

hd7481

Hi, thanks for your reply. He is currently paying 2 car loans and has almost enough in his savings to pay one of them off (its £7700 and he has about £6k). He has been trying to clear credit cards (we got married in December so they obviously got used a fair bit!).

I suppose at the end of the day it depends if we like the house enough to pursue this and also depends on what our house would sell for.

dwsjarcmcd

My only thought may be to use the 6k to repay the cc's.
Do agree that it depends on how much you like the house and take it from there