Sold our house - need a mortgage!

Red_Elle

We have just sold our house :T
We did have a mortgage in principle sorted out, but we lost the last property we were interested in because ours hadn't sold. The one we now want is more money and I am not sure if I will be able to get that amount.

Long story, but we have been using a broker, who seems very good and very honest and advised me to check out rates myself as well. He was able to get me a better deal though, but that was 1.5 months ago and I am wondering if there is anything better around. He is on holiday and we need to get this sorted out asap to put an offer in on this house tomorrow ideally.

I earn £21k plus about £15k bonus (have earned this for past 5 yrs and have the payslips to show it), have £60k equity in our house, so will have good LTV.

Only one debt - £100 per month.

Will be buying with my husband, but all in my name (credit problems on his side). The house we like is £200k. Of the £60k we need £5k for expenses of moving, getting out of our current mortgage, legal fees etc.
The MIP was for £130k, but we now need £145k.

If we did this over 25 yrs we could afford it (total earnings on average are about £3.5 - £4k per month) and the mortgage would be around £800 and something. I know that lots of lenders look at affordability, but as I am buying on my own I am concerned they won't increase the original MIP by £15k.

I know there are quite a few FA's on here and wondered what your thoughts were on it. Current mortgage is with Abbey. It is not a good rate (I reduced my mortgage length from 25yrs to 15yrs and could not risk an increase, so took fixed 15 yr rate of about 6.5% with the intention on paying it off) They will charge around £2.5k to come out of it. The rates I have been quoted by the broker I am using (this is 1.5 months ago though) were around the 4.75%. Are there any better deals since then.

Thanks

Red_Elle

Forgot to say am only interested in mortgage for 5yrs because we plan on starting a family soon and therefore I would need to be working (with it being in my name). After 5 yrs the house can go into our joint names.

herbiesjp

I think you will need to find a lender that will agree to take the full £15k bonuses into account

There are a few around, but it will also depend on your whole scenario as to whether you will fit the lender criteria.

Red_Elle

Thanks, just sent you a message before reading that!

That's exactly what I am finding. Most do not give the same amount for £15k bonus as they would for an extra £15k basic.

Does the fact that I am going to be putting down just under 30% deposit make much difference or not?

Also, have been a customer of Abbey since I bought this house. Have lived here 6 years. After 2 years I changed mortgages, but stayed with them (got more competitive rates elsewhere and then got them to match/compete to keep the business). Then went for the 15yrs fixed rate and reduced the term. What I need is someone who will go through with me exactly what my outgoings are and then will see I can afford it no problem. Will Abbey be more likely to lend me that amount (the original MIP was from them), as I have been a customer of theirs for 6 years and never defaulted on a payment and have a big deposit?