Shall we move house?

mip1978

I've been thinking about moving for the last few months but not sure what to do so any advice would be appreciated!

The house my husband and I live in is in my sole name. I bought out my ex 4 and a half years ago and to do this I think my mortgage broker had to exaggerate my salary!

Our main reason for wanting to move is space as we want to start a family soon and my house is a very small terrace 2 bed.

Our problem is when I look at advice etc on the net and put mine and my husbands salary's into mortgage calculators we can even borrow enough to cover my existing mortgage!

My house is valued at £160k
The mortgage in my sole name is for £127k
I earn £22k
My husband is a salesman on a basic of £11k and commision of about £7k a year.
We would like to look at buying something around £190-200k but I am really unsure if this is possible.

If you are wondering why I haven't gone back to the mortgage broker I used before...well he is on a career break in Australia!

Any advice would be fantastic!

Thank you

happybroker

assuming your credit history is ok, that you have no other debt and that your still reasonably young there is still a chance you could make the move.

From a criteria point of view some lenders will allow all of you husbands commision provided he has been receiving it at this level for some time which will help. From your point of view you need to consider the affordability side of things should this commision dry up and factor in a rise in interest rates when you do think about this.

A good whole of market broker will be able to take you through who will and won't help and you should able to take it from there.

When I say "good whole of market broker" I mean one that won't lie about your income to a lender as this would be a "dishonest whole of market broker" and some one who is happy to commit mortgage fraud (dragging you along on the ride also don't forget). Long me he stay in Australia.

All the best with it.

herbiesjp

mip1978 wrote: »

If you are wondering why I haven't gone back to the mortgage broker I used before...well he is on a career break in Australia!



Thank you

Hopefully never to come back, with the likes of the advice he gave you in the past.

NOt sure what mortgage calculators you are looking at, but you can both get higher than your current mortgage

A good whole of market adviser is where you need to head, not down the route of fraud again.

You have put the purchase prices you are looking at, but what amount of money do you think you will have for a deposit?

penrhyn

You current mortgage is nearly 6 times your salary, even if you include your partners basic its nearly 4 times.
I would urge caution if you plan to try and increase this, is there no possibility of extending/improving your current property, maybe in the loft?

_Andy_

More mortgage fraud - seems to be quite trendy in recent years.

mip1978

You have put the purchase prices you are looking at, but what amount of money do you think you will have for a deposit?[/QUOTE]

We have about £3k which we wanted to use for 'costs' with moving. Can we not use the £33k equity in my house as a deposit?

Thanks for your advice!

herbiesjp

mip1978 wrote: »

You have put the purchase prices you are looking at, but what amount of money do you think you will have for a deposit?

We have about £3k which we wanted to use for 'costs' with moving. Can we not use the £33k equity in my house as a deposit?

Thanks for your advice!

[/QUOTE]

Yes you can -it's just that until you post it, we do not know if you have other funds to put down as well

With that deposit, you are looking at under 85% LTV based on £200k purchase price and a mortgage for £167k

There are a few lenders that potentially could do that for you

But best bet is talk to a whole of market adviser and see what they can find, based on having all your details in front of them

RufusA

I hate to be a voice of doom / reason, but I think being able to increase the mortgage is unlikely.

Even if you could find a mortgage company that would include the overtime. Even if you could find a mortgage company that would allow 3.5* joint salaries, you are only going to be able to be allowed a mortgage of 140k. I suspect they'd want at least a 80% LTV to even consider this.

This assumes zero debt, perfect credit history and a very sympathetic lender! Things which are not easy to find in this day and age. Not to mention a bit of luck with property valuations.

If you factor in the plan to go on maternity leave for a while, and the possibility you'll either have child care costs, or reduced work potential, the affordability of an increased mortgage would IMHO be a worry.

Whilst a two bedroom house may not be perfect, it should be sufficient room to raise a family, at least in their early years. A few years hence property prices, and salary might have changed for the better!

HTH - Rufus.

SelbyJay_2

Your salaries arent that much different to mine and my partners and we'd never get anywhere near borrowing £170k. The most we'd get is about £130k/£140k, and our incomes aren't commision based. This is a huge multiple, and lending people a million times their salary is never a good idea.

Good luck tho, if you're confident you can get by, then all the best.