Advice on Mortgage affordability

MKDave

Hello, This is my first post so please be gentle. Basically the OH is wanting to move to a bigger house following an addition to the family and would welcome some opinion on affordability.

Incomes; Me = £27,000 (+ usually 3k+ overtime) salary increase in Jan to approx 31,000 and OH = £14,000
Benefits; £150pm
Savings £500

Current mortgage; £101k (36k @ 6.65% var, 65k @4.59% til 2008)

House value now approx 135k ish (my assumption), 2 doors down exactly the same sold for 127,750 2 years ago.

Other lending, 1 CC with 1k at 0% and loan 14k @ 8.9% (wedding)

We'd like to sell our current house and pay off loan etc and buy new house for up to max of 200k. Is that even feasable?

All responses welcome.

herbiesjp

What amount of deposit do you want to put down?

MKDave

Equity would pay off the loan and leave approx 20k as a deposit.
So on a 200k house it'd be a 10% deposit.

herbiesjp

MKDave wrote:

Equity would pay off the loan and leave approx 20k as a deposit.
So on a 200k house it'd be a 10% deposit.

Had to ask, as you may have intended using some also for the legal fees, soliciotrs fees agents fees, stamp duty etc


So you are looking for a £180 k mortgage and a joint income of £41k (taking into acccount OT)

Some lenders will take the OT into account and others may take only a certain percantage i.e 50%

With the income of £41k you are looking at 4.4% times your joint income

These multiples are not unheard of, and your plan does indeed look feasible.

I would urge you to talk through your scenario with a whole of market mortgage adviser to make sure the afforadability is there not only now but in the future also. If you apply to the wrong lenders, and they run credit searches, it could harm your application when you approach the correct lenders.

HTH

MKDave

Thanks Herbiesjp, mortgage adviser and house valuations are my next ports of call. Probably after Xmas now.