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Second Time Buyer Advice Needed For "Upsizing"

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Deleerious
Deleerious Posts: 271 Forumite
in House buying, renting & selling
Hi all,

Thanks for reading. I bought my flat on a 75% shared ownership scheme 5 years ago, just me my big TV and my 4 guitars. 5 years on and the GF is living here now and we have one on the way... We need a bigger place! Currently we pay £720.00 a month in mortgage & rent quite comfortably.

I'm in a predicament as I think from the 75% sale of the flat I should make £15k which I could maybe get up to £17 - 19k as a deposit for the new place.

We've seen a couple of new builds and some existing properties from £170 - 200k which would mean about a 10 - 19% deposit for the new place. Which brings me to:

1) We would like to explore getting an interest only mortgage for 2 / 3 years while the nipper is growing up and my career is developing on the strict understanding that at the end of the interest only term the mortgage will rocket from probably £400 - £500.00 a month to £900 a month +. Would we be able to get a 90% LTV interest only mortgage? If so, from where?

2) Would we be easier selling the flat, renting for a while whilst we decide what we are going to do / when we are going to do it?

Thanks very much for reading. As I'm sure you'll appreciate It's weighing on my mind a bit. It's a life changing thing for us and I want to do best for what will now be my family.

Any advice / mortgage links etc you could offer would be greatly appreciated.

Regards,

Deleerious + mrs D + Jnr D to be.
A fully functional diet; :beer: + :spam: = :dance:

Comments

  • eschaton
    eschaton Posts: 2,094 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Deleerious wrote: »

    I could maybe get up to £17 - 19k as a deposit for the new place.

    We've seen a couple of new builds and some existing properties from £170 - 200k which would mean about a 10 - 19% deposit for the new place. Which brings me to:


    I don't think your calculator is working right.
  • chambta
    chambta Posts: 2,770 Forumite
    Part of the Furniture Combo Breaker
    Not sure many places will offer interest only at 90%.
  • CloudCuckooLand
    CloudCuckooLand Posts: 1,905 Forumite
    IO around 75% LTV. Except you will need to give evidence of a repayment vehicle. A decent repayment vehicle will cost pretty much the same as a repayment mortgage.

    Might as well get a repayment mortgage, and avoid jumping through hoops to convince lender to let you have IO - reducing the level of LTV...so saving you from finding a bigger deposit.

    Something is not right about putting your wedding ahead of having a roof over your head, imo. Trim the Florida budget.
    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.
  • Deleerious
    Deleerious Posts: 271 Forumite
    eschaton wrote: »
    I don't think your calculator is working right.

    10% then...
    A fully functional diet; :beer: + :spam: = :dance:
  • Deleerious
    Deleerious Posts: 271 Forumite
    CloudCuckooLand wrote: »
    IO around 75% LTV. Except you will need to give evidence of a repayment vehicle. A decent repayment vehicle will cost pretty much the same as a repayment mortgage.

    Might as well get a repayment mortgage, and avoid jumping through hoops to convince lender to let you have IO - reducing the level of LTV...so saving you from finding a bigger deposit.

    Something is not right about putting your wedding ahead of having a roof over your head, imo. Trim the Florida budget.

    Florida is in the bin now given recent events.

    Thanks for the advice though.
    A fully functional diet; :beer: + :spam: = :dance:
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