Re mortgage would like new house can you help me :)

hansonwa

Hello, We are looking to move to a bigger house to give our twin boys more leg room but we are not quite sure how it works We would like to know what we could borrow. Any ideas??

We own a house valued last year at £145,000. Currently have 2 Mortgages 1- £45,000 16yrs remaining & the other £15,000 15 years remaining.
Our fixed has ended and are on BR+0.75
Since our last Mortgage app 6years ago, our circumstances have changed, I now only work a few hours when the boys go to preschool.
So combined earned income is £25000

We have seen a house for £175,000

Do you thinks it possible we could reach that amount?
I have heard of porting your mortgage does this mean I could ask for the existing £60K on the existing Rate or is that just plain cheeky lol

Thanks

kingstreet

You port the rate, not the mortgage.

To be able to port you have to apply to your lender for a whole new mortgage for the total amount you need. This will be subject to status and current lending criteria.

You have £85,000 equity, leaving aside £5,000 for fees that leaves you with £80,000 deposit for the new property. A £95,000 mortgage will be a stretch on a joint £25k, especially if you have other credit commitments, but it isn't impossible.

You'd have to apply for a £95,000 mortgage and ask to port the rates on the two accounts for the first £60,000. Then you take a new product for the additional £35,000. You can take the whole mortgage on whatever term you prefer.

hansonwa

Thanks for your reply I have read it and after some sums today I think its proberbly better to wait till Sept when the boys go to full-time school and I can do more hours at work.
If its still for sale then we may be able to get it a bit cheaper.
Thanks again for taking the time to reply