How much can I borrow?

Raggs_2

If you decide to wait a year, it's probably most sensible to throw your savings at your debt, due to the interest rate differences. Not guaranteed of course, but still.

TOBRUK

Hi Cheeseontoast, I don't know if this is helpful to you but it's Halifax that gave me a remortgage offer (as my mortgage wasn't portable and the lender didn't do portable!) with extra 20k.

Have you had any valuations done - most estate agent give free valuations without obligation. It may be worth doing as you've had work done on your house to give you an idea before seeing people at the halifax. Actually the halifax had a valuation done on my house before they made an offer and valued it 10k higher than any of the 3 estate agents I had value the house!

Thrugelmir

CheeseOnToast wrote: »

I already have an emergency fund, and a 25K deposit, what's the problem?

I asked how much I could borrow in my current circumstances, not random advice on what I should do with my finances.

No problem at all. While you may like to create an illusion for yourself that you have a deposit, the reality is that is actually £3k. That was my observation.

Squish_21

Try the Nationwide 'How much can I borrow?' calculator. I think it takes into account debt.

However; Nationwide will give me far more than i'd ever be willing to borrow. I've worked out exactly what I can afford per month and then worked out the maximum mortgage I could afford on that basis.

Failing that speaking to a mortgage advisor is your best bet.

CheeseOnToast

Thrugelmir wrote: »

No problem at all. While you may like to create an illusion for yourself that you have a deposit, the reality is that is actually £3k. That was my observation.

That's fine, but my debt payments are managable, and I'm happy to pay them off over 3 or 5 years if it means moving house now. That's what I meant by what's the problem?

I earn reasonably good money and I have the option of unlimited overtime at the moment so I can really focus on clearing my debts down. I understand that my net worth is not 25K, I'm not creating any illusion that it is. I'm just saying what I have available in funds, and what my debts are. Nothing more, nothing less. There is no "illusion" that I have a deposit, as I do, indeed, have it? Just because I have debts to take into consideration doesn't affect the fact the deposit is real......I appreciate my situation is not perfect, I'm just trying to do the best I can for my family.

I have actually had a bit of luck today and I think my available pot is now going to be more around the 40K mark, so I will likely use 10K or so to clear down a chunk of the debt, and use the other 30K towards my house move (deposit, fees, stamp duty etc.)

HarveyGal

Well done on your lucky day and increasing your pot.
From reading various threads, my understanding is that when lenders are tapping income and details into their mortgage calculators, they do consider how much deposit AND how much debt an applicant has. You definately have 25K deposit (and indeed, perhaps more after today)...but a lender can see your debts and so would calculate 25K - 22K = 3K.
That's all.
Good Luck with your plans and I hope I have a lucky day like you did!!

Thrugelmir

CheeseOnToast wrote: »

That's fine, but my debt payments are managable, and I'm happy to pay them off over 3 or 5 years if it means moving house now. That's what I meant by what's the problem?

I earn reasonably good money and I have the option of unlimited overtime at the moment so I can really focus on clearing my debts down. I understand that my net worth is not 25K, I'm not creating any illusion that it is. I'm just saying what I have available in funds, and what my debts are. Nothing more, nothing less. There is no "illusion" that I have a deposit, as I do, indeed, have it? Just because I have debts to take into consideration doesn't affect the fact the deposit is real......I appreciate my situation is not perfect, I'm just trying to do the best I can for my family.

I have actually had a bit of luck today and I think my available pot is now going to be more around the 40K mark, so I will likely use 10K or so to clear down a chunk of the debt, and use the other 30K towards my house move (deposit, fees, stamp duty etc.)

As HarveyGal says lenders do not view it in the same way you are. Whilst your debts are manageable if the status quo is maintained. A lender has no idea if your circumstances will change. Unfortunately many peoples do for a multitude of reasons.

firesidemaid

i am with first direct, and even though i had less than 50% ltv mortgage, they made me pay off my credit card debt (even though it was stoozed and sitting in a savings account earning lots of money).

they also would not take any overtime or benefits into account due to financial instability and potential change in government.

not all lenders will be the same, but just some things to consider.

at least pay off the higher interest debts

getmore4less

CheeseOnToast wrote: »

Just to be clear, I wasn't trying to be rude in my post earlier. But clearly as others have said I am aware my debts will be involved in the process, this is why I was asking. And it's pretty obvious in an ideal world I have no debts and a bigger deposit etc. etc. I am just quite keen to move to the area where my eldest son is in school whilst he's still relatively young, he's 5 now, 6 in November.

Hi TOBRUK, yes I have a mortgage now. I bought my house unfortunately close to the peak, it was valued at 90K at the time (around Jul 2006), I owe 86K on the mortgage now. I have done quite a lot of work to it though, new carpets and decoration etc. It's still really an FTB type of house though. The mortgage is portable so I will approach my lender (Halifax) about porting it and see what they can offer me in terms of an increase in borrowing.

At the end of the day, I know my debts are high, but my fiance is in University and we have two children so it's quite a lot of out-goings, but of course I can reign it in. If I can't get what I need I will just focus for 12 months on clearing a large chunk of the debt.

Thanks for everyone who has replied helpfully.

How long is the OH at uni.

Moving is expensive and you are not going to be able to increase the mortgage a lot, if you cannot buy the ideal place and might want to move again within a few years <10 then it mght be worth waiting.

Delay the year, adjusts the spends down you will be in a lot better possition lower debt and a year closer to the OH earning.

Depending on the interest rates on the debts you may save a lot of money.

Once ahead of the curve it is a lot easier to stay there, by extending borrowing now you are just extending the time you will be in debt and paying more interest.

CheeseOnToast

Thanks for all the advice everyone, I do appreciate what people are saying about the circumstances.

I think my biggest issue is the fact I am going to either break even, or hopefully make around 4-5K if we are very very lucky. I think the housing market is likely to drop and I don't really want to end up in negative equity in my current property and then using the cash to buy out of it. I know this is going to have people cringing, but I'd rather just move and have it done with and concentrate on settling down and paying bills.

Re my lucky day, yes it was very very lucky, I'm getting married in less than 2 weeks and one of my uncles has said he wants to give me money towards moving - it was totally out of the blue so it's just amazing really. He's very rigid when it comes to finances though and I have a feeling when I explain my circumstances he may side with the others in this thread who think I should pay them off first!!! Hopefully I can come to a good balance and pay off half with some of the cash then move with the rest.

My OH is in uni for another 3 years after this academic year, she's doing a Batchelor of Nursing. The good thing with that is she gets a bursary commencing in September of around £7K p/a.