Please can you advise me?

cherylwilko_2

I have just had my offer of £170,000 accepted and now need to look for a mortgage for £150,000. Please does anyone know the best type of mortgage to go for in this economic climate, do you think mortgages will rise soon etc?

I have a house to sell and expect to get around £90,000 for it, I owe £23,000 on this first house. I want to decorate my first house before selling it and can afford to move into my new house for around 12 months before selling my old house, ( in case it does not sell) I can afford payments of around £800 per month for the new house but it is a mortgage minefield out there and i am SCARED!!!!! thank you,

Cheryl

getmore4less

Would have been a good idea to look for mortgage before making offers on places.

How can you say you can afford both when you have no idea of the costs yet?

With an existing mortgage this will restrict your borrowing.

What salary are we dealing with.

LTV 88% that will be at the expensive end of the market

£150k £800pm on a

25y term max rate 4.09%
30y term max rate 4.94%

90% LTV tend to be higher than this.

How much extra cash do you have in reserve for costs and the refurb?

What happens when the other place does not sell after 12 months.

JA1000

It's not up to you to decide if you can afford it unfortunatley, you will need a second mortgage if I have understood your situation. You have also offered on a house without being proceedable, this from and EA perspective is worthless, don't be surprised to see this house not taken off the market and someone else to put an offer in.

You need to get moving very very quickly if you want it.

cherylwilko_2

getmore4less wrote: »

Would have been a good idea to look for mortgage before making offers on places.

How can you say you can afford both when you have no idea of the costs yet?

With an existing mortgage this will restrict your borrowing.

What salary are we dealing with.

LTV 88% that will be at the expensive end of the market

£150k £800pm on a

25y term max rate 4.09%
30y term max rate 4.94%

90% LTV tend to be higher than this.

How much extra cash do you have in reserve for costs and the refurb?

What happens when the other place does not sell after 12 months.

Thanks for your reply,

I now have a deposit of £30000 so need a mortgage for £140000.

I have had a few mortgage quotes and found the monthly payments to be around £800 so do have a rough idea of costs. My current mortgage is £106.00 per month. My total payments will be roughly £900-£1000 per month.

The problem is getting a mortage. My main salary is £27000 and I have an income of £5000 from a part time job. I have excellent credit ratings and no other debt, credit cards are paid off each month.

If my place does not sell after 12 months, i could still manage the payments and could rent my house out until it is sold maybe?.

I have £5000 left in savings after my deposit of £30000. The house does not need any refurb yet, it is imaculate.

herbiesjp

Hmmm.

I think the consensus here is that you are not necessarily doing things in the right order.

I'd suggest get some professional advice, as you may lose this property, and if you look for another one, you could stand to lose that too, if you go about it in the same way.

Granted no one knows your actual situation, but one normally sells their current property at the same time as buying the new one, or lets out the first one.

Have you told the lender for the new property that you would still have the first mortgage?

But you cant let out the first one as you want to redecorate it - would it not have been wiser to redecorate before putting an offer in on a property?

Chinkle

Amazing that in the space of a day you find an extra £10K, wish I had your luck!

I'm sorry you really should have done your sums before you made an offer, as I really can't see how it is proceedable. Glad I'm not the vendor here.

You're looking at someone to offer you nearly 4.5 x salary and that's without counting the £23K debt you have on your first house. You need to sell up and release that equity in order to buy the new place.

Leon_W

Prospective outstanding mortgages £163000. Salary £32000. Over 5X income.

Realistically that isn't going to happen.

getmore4less

cherylwilko wrote: »

Thanks for your reply,

I now have a deposit of £30000 so need a mortgage for £140000.

I have had a few mortgage quotes and found the monthly payments to be around £800 so do have a rough idea of costs. My current mortgage is £106.00 per month. My total payments will be roughly £900-£1000 per month.

The problem is getting a mortage. My main salary is £27000 and I have an income of £5000 from a part time job. I have excellent credit ratings and no other debt, credit cards are paid off each month.

If my place does not sell after 12 months, i could still manage the payments and could rent my house out until it is sold maybe?.

I have £5000 left in savings after my deposit of £30000. The house does not need any refurb yet, it is imaculate.

Quotes for mortgages you can't get are not much use estimating costs.

With £30k you are 82% LTV <80% would open up more options.

£32k income is 5+ multiple which is stretching most lenders criteria and some may not be happy to include the part time second job.