How much can I borrow?

joolley

Cheeseontoast, hi.

I think I see where you're coming from. The issue with debt, is the serviceability. So £22k debt may well be tiny or ginormous depending on your circumstances.

That's not a ridiculous amount of debt especially if you've been to uni and have a good wage. I had £34k in debt when we got our first mortgage a few years ago. However we had a £110k deposit and another £76k in savings, an £80k joint salary at the time, no kids and no expensive outgoings. So, were the bank to subtract the debt from our liquid cash, we'd still be ok. Unfortunately, you don't seem to have the rest going for you - little or likely negative equity, 3 dependents (since wife at uni) good deposit but that's it.

So because of that, although your deposit could be good, you may not be able to borrow as much as you could do if you seriously tackled the debt. Waiting may give you the house your family yearn for.

EDIT: Dept free now.

joolley

Oops, posted too late! Sorry.

getmore4less

CheeseOnToast wrote: »

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.

Is the planned move convenient for the OH to get to work?

Will there be jobs there in 3 years?

Our next door want to move but can't because there are no suitable nursing jobs in their chosen area(plenty where we live now).

TOBRUK

CheeseOnToast wrote: »

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.

So you now think you may break even or you may in the future end up with negative equity.

I think your uncle is very wise and I really think it would be better if you have the chance to pay off your debt - not half of it.

Your soon to be wife (congratualations by the way :j) is going to be at uni for 3 years. Although she is going to have a bursary of "around £7k a year", isn't there a possibility/probability of further debt while she is studying? I know that uni fees are around 3-4k a term let alone other costs and things like books etc. Are there examination fees etc I know there is in med school.

I hope you can work things out.

CheeseOnToast

Sorry for the delay guys, for some reason I didn't get the email saying the thread had updated.

Basically my OH will get 7K p/a for a further 3 years of her degree. We live in Wales so there are no tutition fees payable up front, also, as part of the NHS programme, they pay the fees etc. Following that, nurses start on 20K pa here, but there are a lot of jobs for community nurses as well. We also live 1 mile from a Major hospital, my OH will be going on "the bank" there through the summer, which is like covering as an auxillary nurse assistant. By time she graduates I would realistically hope to be earning at least 50-60K+on-call+car allowance.

The other good thing is my youngest son will be 3 in July 2011 and start pre-school in September 2011, which will save me approx £300 per month I am currently paying in childcare fees.

I am not expecting to incur any more debts.

TOBRUK wrote:

So you now think you may break even or you may in the future end up with negative equity.

Spot on.

For anyone that is genuinely interested, I spoke to Halifax today, and based on my current earnings and debts (they classed my on-call as guaranteed, bringing my basic to £40,200 + £6000 non-guaranteed overtime)... they offered to lend me upto £132,510 provided I supply minimum 15% deposit.

We are looking at houses around the £145K mark which means I can look to either put 22750 deposit down + fees etc, hopefully have 10K left to clear my debt down or visa versa.

They also said I could port upto 87.3K @ 5.59% and the additional, unfortunately, fixed @ 6.04% for 3 years if I take a current account.

I am going to tryA&L (Santander) next as their rates are much better, I just need to ensure my ERC charge (only around £900 now) is easily re-coupable in the short term.

Thanks again to everyone who has joined in the conversation.

TOBRUK

Hi CheeseOnToast, it all sounds good and pleased that you have seen what is available, seems to have gone well at Halifax. Getting a few valuations on your house now would give you an idea how much you'll get.

Good to know your fiance is here in Wales studying. Hopefully the talk of making Welsh students pay fees again will be put off until she graduates!

Good luck, hope things work out for you.

CheeseOnToast

TOBRUK wrote: »

Good to know your fiance is here in Wales studying. Hopefully the talk of making Welsh students pay fees again will be put off until she graduates!

Yes, I really hope so!! She's only 22 and I'm only 26 and we have 2 kids (the youngest of which was very ill last year - doing OK at the moment), on top of that I average 60 hours so we're really up against it to be honest and really just trying to get a good life for them.. Our life is chaos and we really don't need any more set backs!!

Thanks buddy

Thrugelmir

CheeseOnToast wrote: »

Yes, I really hope so!! She's only 22 and I'm only 26 and we have 2 kids (the youngest of which was very ill last year - doing OK at the moment), on top of that I average 60 hours so we're really up against it to be honest and really just trying to get a good life for them.. Our life is chaos and we really don't need any more set backs!!

Then don't over commit. The tortoise beats the hare in a long distance race. Time is on your side.

calebdylan

delay the repayment time by asking the manager to do so some of them allow you to switch the loan account to other respective branches where you can get low interest ...... my personal advice is look at the interest methods carefully before involving