Home Mover - what is my limit?

onefurlongout

My wife has just told me that she would like to move into a new build property. We currently own (mortaged) a 3 bed semi.

The house she has seen is priced at £165,000. Our current property is worth around £110,000 with an outstanding repayment mortgage of £90,000

We are currently on a fixed deal with Halifax and tied in for a further 2 years (rate 5.79%).

I just wondered what our options are?

1) would we be able to purchase the £165k property? Our joint income is £35k (wife employed p/t) we have no other loans or credit cards and currently pay £772 for our mortgage (15 years left)

2) if 1 is ok should I look at getting out of my current deal due to the low rates at the moment

3) what roughly is the maximum we could borrow? Does the same lending criteria apply as a FTB?

Thanks

powerwin

Whilst I'm not a mortgage expert, I'm going to reply as no-one else has.

1) I reckon you have £20k equity in your current property, so on the new property you'd borrow £145k. With your combined salary of £35k, that's a multiple of 4.1, which I would imagine is within the realms of possibility.

2) Always look around at multiple providers to find the best deal, just be careful about how many searches on your credit file are done, as this can affect your credit rating. When you get quotes make it clear they can't search your credit file unless you've authorised it.

3) This will vary according to lender, and they won't treat you like a FTB, they will take into account your particular circumstances. For starters, you're likely to be older than most FTBers.

Just my unprofessional opinion.

Rgds

onefurlongout

Thanks for taking time to reply powerwin,

I've never moved home before and wondered if movers were treated differently to FTB's.

I guess my first port of call is Halifax to get some idea