Advice on additional borrowing

Hannah_Lam

Hiya,

Grateful for any advice on additional borrowing, my husband and I are thinking of selling our 2 bedroom flat as we're thinking of starting a family, the currently valued at £145k, we bought it 2 yrs ago at £139k. Having spoken to our mortgage lender briefly we are told that the maximum that they can lend us is £183k but that is without doing a credit check.

My main concern is that my husband has a loan for £10k and I wonder how much that would affect our borrowing status? Is there a way to find out whether or not the mortgage lender will lend you the additional money without going through a credit check? Our combined salaries is £55k and apart from my husband I don't have any loans, we have never defaulted our mortgage payment and we are confident that we are cope with the additional borrowing as part of the £10k belongs to car loan which will be paid off fairly son as we are selling the car which leaves a default of £7k.

I would be most grateful to get some advice .

Many thanks

Hannah

homer_j_3

Yes, ring your mortgage lender back up and ask them how it will affect their calcs as each lender has their own way.

Normally they take the monthly payment and multiply by 12 and then deduct this from the main income earner. They then use their normal income multipliers on this figure to calculate the new borrowing.

If you are not tied into your current mortgage then I would suggest that you maybe speak to a broker who can look at more than one lender and get you the most competetive deal. Dont be scared of moving away from your current lender as it could save you some dosh in the short term and long run if you adapt the philosophy of moving lenders everytime a deal expires.

Hannah_Lam

Many thanks for your helpful reply, you're right I really do need to speak to the lender again however I am in a 2 yrs fixed rate mortgage with them which run out in December 2007 and the rate is pretty good at 4.24%. Am thinking of whether or not to consolidate my loan but not sure if this is a good idea ?

Thanks again

Hannah