Wanting to move house and change mortgages

hewielewie

Hi, we bought our house in 2004 for £102950 and borrowed £120000 on the Northern Rock together mortgage.
We are now on the standard variable rate of 4.78% and are paying £150 overpay which takes our payments each month to £871 which we can afford easily.
Our remaining balance is £108649 and according to the mortgage calculator will reduce to £103584 in a years time and to £98257 in two years.
Our house is probably valued now at around £115000. We want to move to a larger house and we know we can afford to pay up to £900 per month to do so but we are not sure if we can do this as our ltv is quite high.

Is there anyway we could get a larger mortgage and move?

dimbo61

Your mortgage is still £108K now and the house is worth £115K
Take off the costs of selling and buying a new bigger home and you would have no deposit.
Could you extend if space to make home bigger !

hewielewie

We cannot extend the house. We have a 2 bedroomed house but are looking to buy a 3 bedroomed one. Do we have to wait until we pay off more of our mortgage before we can look to buy?

Debt_Free_Dreamer

Please don't forget buying a bigger house is not just a bigger mortgage, there are other costs involved, both initially and on-going.

Have you got the money to deal with moving - Solicitors, Agents Selling Fees, Mortgage Arrangement Fees, Physical Moving Costs etc.,

A larger house may mean - Council Tax payment increase, Water Rates go up (if non metered), You need more gas and electric etc.,

When I moved from a 2 bed to a 4 bed it was these additions that were the main problem, not the mortgage which I had budgeted for.

Also, with regard to mortgage rates, times are good at the moment and rates are low. This may change after the election in May, when the whole system will be in for a shake up if a change in goverment takes place (or even if it does not). The next government will either have to increase taxes or reduce benefits and this is going to impact on us all.

I'd sit tight for at least the next year and see what happens, if you can afford to wait.

If you do decide to go for it, try to find out what the extra costs will be before you comit. Find out from the seller what their bills are each year to run their house (and ask to see proof).

Good Luck.

hewielewie

We havent even started looking yet. We were just wondering if we would be able to get a bigger mortgage if we wanted to move or are we stuck where we are until we reduce our mortgage further.

hewielewie

Any advice?

VIGILANT22

you have been given guidance above...you have no deposit for a new house

beecher2

Since you can easily afford the overpayments, then overpay by more in order to build up equity. You need at least a 10% deposit, plus moving costs.

hewielewie

What if we have the means to pay the deposit and moving costs. Do we still need to build up equity.

Viligant, thanks for your reply but I would prefer it if you didnt reply to this question

de1amo

i would have thought the practical thing you can do is go onto web site of a building society and do a quick affordability check on their calculators--it will tell you how much you have to play with when viewing 'possible' 3 bedroomed places -i know the world has changed and as vigilant poinrtedly said many of them required a percentage of your own income to bring down the ltv rate-good luck!

beecher2

hewielewie wrote: »

What if we have the means to pay the deposit and moving costs. Do we still need to build up equity.

Viligant, thanks for your reply but I would prefer it if you didnt reply to this question

so you do have a deposit? I'm finding this a bit confusing to be honest. Maybe it'd be simpler if you posted details of the price of the house you're interested in, the level of deposit you would be able to put towards it, and your joint salary.