Can I afford to move house?

KaratePigeon

Hello, was wondering if some helpful knowledgeable person could advise me.

I really want/need to move house as there are 3 of us in a tiny 2-bed and I'm pregnant again.

I work full time and earn about £27k, my partner works part time, self employed so I'm really confused about what figures we use but last time we asked advice it was calculated as an income of around 15k. Our house is worth about £135k, with 112k left on the mortgage.

what kind of income multiples are lenders using now? I'm looking to spend about 180k on a new house so I guess we'd need a 90% ltv, is this feasible? (we have no savings, just the equity on the house as a deposit). I'm sure we could afford the repayments (currently paying £300/month for a loan which is nearly paid off, so this will then be extra cash we can use for mortgage). How much would I need for things like stamp duty, estate agents fees, HIP, removal van, anything else...? or can some of that be added onto the cost of the mortgage?

Ideally I'd wait 6-12 months and save up some money, but then I'll be on maternity leave, and I know they like to see 3 months payslips so I guess I'd never get one agreed then so should do it now? (I know someone is going to say how will I afford mortgage while on SMP but I have some money aside for that).

Thanks for any replies.

WTTM

KaratePigeon wrote: »

Hello, was wondering if some helpful knowledgeable person could advise me.

I really want/need to move house as there are 3 of us in a tiny 2-bed and I'm pregnant again.

I work full time and earn about £27k, my partner works part time, self employed so I'm really confused about what figures we use but last time we asked advice it was calculated as an income of around 15k. Our house is worth about £135k, with 112k left on the mortgage.

what kind of income multiples are lenders using now? I'm looking to spend about 180k on a new house so I guess we'd need a 90% ltv, is this feasible? (we have no savings, just the equity on the house as a deposit). I'm sure we could afford the repayments (currently paying £300/month for a loan which is nearly paid off, so this will then be extra cash we can use for mortgage). How much would I need for things like stamp duty, estate agents fees, HIP, removal van, anything else...? or can some of that be added onto the cost of the mortgage?

Ideally I'd wait 6-12 months and save up some money, but then I'll be on maternity leave, and I know they like to see 3 months payslips so I guess I'd never get one agreed then so should do it now? (I know someone is going to say how will I afford mortgage while on SMP but I have some money aside for that).

Thanks for any replies.

I think you are doing this in the wrong order.

Maybe you should have sorted the house before the sprogs dropping out in quick succession.

Clever people that I know do it that way.


MOMENT

cashbackproblems

KaratePigeon wrote: »

Hello, was wondering if some helpful knowledgeable person could advise me.

I really want/need to move house as there are 3 of us in a tiny 2-bed and I'm pregnant again.

I work full time and earn about £27k, my partner works part time, self employed so I'm really confused about what figures we use but last time we asked advice it was calculated as an income of around 15k. Our house is worth about £135k, with 112k left on the mortgage.

what kind of income multiples are lenders using now? I'm looking to spend about 180k on a new house so I guess we'd need a 90% ltv, is this feasible? (we have no savings, just the equity on the house as a deposit). I'm sure we could afford the repayments (currently paying £300/month for a loan which is nearly paid off, so this will then be extra cash we can use for mortgage). How much would I need for things like stamp duty, estate agents fees, HIP, removal van, anything else...? or can some of that be added onto the cost of the mortgage?

Ideally I'd wait 6-12 months and save up some money, but then I'll be on maternity leave, and I know they like to see 3 months payslips so I guess I'd never get one agreed then so should do it now? (I know someone is going to say how will I afford mortgage while on SMP but I have some money aside for that).

Thanks for any replies.

Just a few quick calculations, you have a combined income of 42k * 4 (most lenders will lend 4 times you income) = £168k + 23k (equity)

With a £180k house and the money you have in your house, you need to borrow £157k which is a LTV of 87%

So on the face of it you would be able to afford it with 4-6k needed for estate agents and moving costs. However with no savings and children on the way it'd be a struggle financially.