Will I be able to get a new mortgage if I sell?

pateroo

Apologies if this is a really daft wquestion, but I'm really confused by mortgages and lending and whatnot at the moment.

I bought my first house about 5 years ago, with my parents acting as guarantors. It was 100% mortgage (so didnt have a deposit) on a fixed rate (which has now expired and I'm just on a variable now).

I was earning 21k at the time, and the mortgage was for 120k. I had a few debts.

Fastforward 5 years and I am expecting my first child and want to move closer to my family and to a slightly bigger house.

According to my statements, I have paid off around 10k of mortgage. I'm awaiting a valuation on my house, but I am confident I will get pretty much what I paid for it, judging by the prices of the same properties in my area.

All going well I will have about 10k back from the sale of my property (not profit, just what I have paid off over the last 5 years) and about 5-6k in savings to put towards another property. I hope to buy a house in the region of 150k. I will, therefore, have a 10% deposit. My question is, if I sell up, will I get a new mortgage in the current market?? I'm now on 31k a year. My credit rating is fine.

Thanks in advance for any responses (sensible, I know how quick some people can be to criticise niavity on here), suggestions or advice!

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pateroo

Hey! Thanks for your reply!

How much are banks willing to lend? I know it is also dependant on affordability, but roughly, are we talking 2.5/3/3.5 times your salary?

150k is me being greedy. There are properties priced around 120-130 which would be just as suitable.

I know this is daft, but i'll ask it anyway..... If I were to buy a different house for 120k, i.e. the amount of my original mortgage, is it not possible just to kinda of swap the house the mortgage is on? Surely if I were to stay with the same mortgage provider they would see that I have no problem paying a 120k mortgage.

I'm going to get in touch with the mortgage advisor who sorted everything for my first property, just thought i'd put the feelers out on here first!

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dimbo61

Buying and selling houses costs money at least £5,000 just to move to same price property

mustang1

I'm not sure what the position is either if you are currently pregnant so going to be on maternity leave very soon. What is your maternity pay policy? I think lenders have different approaches to this as well so you definitely speak to a broker.

It's not cheap to sell - you need to think about the additional costs of estate agent fees, stamp duty on the new purchase, removal costs. That may swallow up 50% of your £5-6k savings, which you should probably keep back given children aren't cheap!

pateroo

Thanks for all your responses.

Obviously the pregnancy thing is a spanner in the works which I didn't foresee (in terms of mortgages, not planning a family!).

As for the cost of buying/selling, it's not too much of a problem. I'm very lucky to have a supportive family who will chip in for those sort of things - especially as it will mean easier access to the new arrival which they are all very keen on spending time with. So deposit and costs are sorted really. It's more an issue of whether in the current market I'd get a new mortgage.

I guess first port of call will be the mortgage company I'm currently with to see if they offer any sort of portability. Then, if things seem tricky, get a mortgage advisor in to help put things into simple terms )

The alternative is that I rent my house out and buy together with my partner. He has his own flat elsewhere in the country which has been rented out. I've spoken to an accountant who said this is possible - but obviously there would be the worry of one, or even both of our properties going unrented.

In terms of the value of my property. I am very surprised also that they still seem to be selling for the same price. It could be that the sellers have been told by EA to expect to drop the price with offers?! Interestingly, I found out using property bee, that most in the area have been put UP by 5k in the last 5 months!

I'll keep you posted on how things progress; valuation, mortgage etc!

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