How much could we borrow for a mortgage??

dawnylou

I don't know if anyone can help?

We have lived in our current flat for 2 years 10 mths.
We originally took a mortgage of £59K. We remortgaged 6 mths ago up to the amount of £69K.

We have been advised that the property should now be worth around £85K - but don't know if that is a realistic quote?!?

Anyway we have set our sights on a house we like for £120K - with annual incomes of £12K and £14K, is this possible?

Thanks in advance for any help!

herbiesjp

Who is your current lender?

Are there any penalties to leave your current deal?

Is your current deal portable?


If you put down a 10% deposit, you could find lender willing to agree this for you

All depends on your whole scenario

HTH

dawnylou

Thanks

Current lender is Leeds Building Society.
Mortgage can be taken with us...

herbiesjp

dawnylou wrote:

Thanks

Current lender is Leeds Building Society.
Mortgage can be taken with us...

First port of call then should be them

Give them a call to see if they can go to the level requested

HTH

PoorDave

85k sale price minus 69k outstanding leaves 16k.

120k minus 16k deposit is 104k.

Joint income 14k plus 12K is 26k.

So you're looking at a multiple of 4 times joint salary, which should be achievable, either by being nice to your current lender ("pretty please") or by shopping around, in my humble opinion.

Leon_W

Yep PoorDave

Pretty acurate, although if you have any loans or credit cards etc these will be deducted from the total mortgage advance.

Dependent on your credit score 4.5 X Joint is possible with some lenders.

If in doubt, pick up the Yellow Pages and find a local broker who should be willing to help.

Best of luck.