Thinking about the future

mpg

Hiya folks trying to guage opinions.

My circumstances.

I have £121,000 left on my mortgage my house is worth approx £175,000

We bought the house 3 years ago of a family member who left £30k in it so we got around needing a deposit.

Our circumstances have since changed I started a business last year and have a very good ongoing contract with a company I have been connected with for 6 years(we have a fabulous working relationship)

This is where I start to get brain ache

Our mortgage is £709 PM cap/int

With the current interest rates and house prices at what I believe to be pretty much the bottom (especially in our area)

My thinking for the future is

Buy a new house to live in until we retire

new house £425,000
Interest only mortgage £1100 PM

After selling house and with some savings approx £60k left over 30K back to the inlaws leaving 30K for deposit on the new house this falls very short of the 20% that we ideally want. but there are 10% deals out there.

My thinking is to buy this much bigger house stay until we retire in 30 years time. Then sell up pay the original loan back to the bank and buy a smaller retirement home with whats left over.

The deposit is the biggest hurdle.

Any thoughts guys

Caz3121

you will need a minimum of 10% deposit plus stanp duty and fees.
to support a £385k mortgage you will need a hefty salary and the fact that you only started your business last year will probably make things more complex as it would be usual to ask for at least 2 years of accounts. Best to see a whole of market broker

mpg

Hiya caz

I have been self employed for 3 years now but last year started a company as I took on a big contract needing 12 staff. This contract has just been re-negotiated on an ongoing basis with a price review every 12 months. That should put me in a better position. I have all my business and mortgage etc accounts with the same bank. Which I hope should help.

Yeah stamp duty is a right pain £12k is day light robbery.