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re-mortgage advice
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shaye_2
Posts: 2 Newbie
Looking for advice/opinions.......
I currently own a house I bought from my mother 2 years back as she was having trouble-paying mortgage. I have I have done a fair bit of work to the house to increase it’s value and I am hoping to re-mortgage it to release money to use as a deposit to buy a house for me and my partner as we currently rent £540pm
Rough figures are......
53,000 mortgage
100,000 est. value (need to get it valued once work completed)
Looking to re-mortgage 75% LTV so releasing 22,000 minus fees to use as a deposit on next property
Looking to buy a property for between 100-130,000
At the moment I pay both mortgage at £270pm and rent at £540 I don’t receive any rent from mum who still lives at house I have mortgage on....
I run my own business and have a wage roughly 30,000 (depending on trade)
I will be looking to see a mortgage advisor once I’ve completed work in house but was hoping to get feedback/advice before I do
Do these figures/plan make sense or is it to risky???
All help much appreciated
I currently own a house I bought from my mother 2 years back as she was having trouble-paying mortgage. I have I have done a fair bit of work to the house to increase it’s value and I am hoping to re-mortgage it to release money to use as a deposit to buy a house for me and my partner as we currently rent £540pm
Rough figures are......
53,000 mortgage
100,000 est. value (need to get it valued once work completed)
Looking to re-mortgage 75% LTV so releasing 22,000 minus fees to use as a deposit on next property
Looking to buy a property for between 100-130,000
At the moment I pay both mortgage at £270pm and rent at £540 I don’t receive any rent from mum who still lives at house I have mortgage on....
I run my own business and have a wage roughly 30,000 (depending on trade)
I will be looking to see a mortgage advisor once I’ve completed work in house but was hoping to get feedback/advice before I do
Do these figures/plan make sense or is it to risky???
All help much appreciated
0
Comments
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1st house, £100k @ 75% LTV = £75k mortgage. £22k gained.
2nd house, £120k less £20k (less £2k fees) deposit, leaves £100k to be mortgaged.
Total £175k in mortgages. £30k income.
Makes the salary multiple x 5.8.
Pretty unlikely.
Even going for a £100k property will require 5.2x income.
Worth a chat with a broker, to check you have what you need in the way of paperwork to support your self-employed income. And they may have some views on Lenders who use affordability calculation rather than salary multiple.
But it sounds risky to me.Act in haste, repent at leisure.
dunstonh wrote:Its a serious financial transaction and one of the biggest things you will ever buy. So, stop treating it like buying an ipod.0 -
thankyou for the reply
yeh the slary multiple doesnt add up its just the monthly repayments wont differ to much from rough calc of
100,000 @4.5% over 25 yrs = 560
75,000 @ 4.5% over 25 yrs = 420
at the moment i pay 270 and 540 which i have no hassle paying and the £170 shortfall i have spoken to my mother about helping with the mortgage i.e the extra £170 a month
but i see what you mean about the figures not balancing exactly0 -
We're currently in a period of historically low interest rates, but your mortgage will likely last a couple of decades.
If you would need your mother's help now for the £170 "shortfall", what would you do if interest rates doubled? Definitely worth having a chat with a broker, but nearly six times income does look unlikely, sorry.0
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