Advice needed re Woowich mortgage please

EllieMarie

As per the title I would be very grateful of some advice regarding a Woolwich mortgage.

The details are as follows:

I currently have a mortgage with the Woolwich for £78,645 which is paid on an IS basis.

I have also borrowed from the Woolwich £2,403 from my mortgage reserve account to purchase a car. So in total there is £81,048 outstanding with the mortgage company.
Just for information there is a further £2957 which is available to me to borrow from the mortgage reserve account.

I have received an offer of £160,000 on my current property and would like to offer £165,000 on a property I would like to move to. So along with moving costs I would need to borrow another £10,000 from the Woolwich.

I am keen to stay with the Woolwich because my fixed rate of 5.69% comes to an end next April and will then track at 0.95% above the base rate.

My annual income is approximately £18800. My financial adviser believes the Woolwich will still loan me 5 X my income but apparently the MIP just came back as they may lend me £91,000 and nothing more concrete.
Does anyone or any of the mortgage advisors have any up to date experience with the Woolwich and their lending criteria? Is is going to be at all possible and will they consider such income from maintenance, child tax credit, working tax credit?

I will have a £79,000 deposit to put down from the sale of my property. I have no other debts and one dependant child.

Hope that's enough information to gain some feedback.

Thank you in advance for any replies.

kingstreet

So you are buying for £165k and have a £79k deposit?

If you are selling for £160k and you owe Woolwich £81k, that leaves the £79k. Where's the money for moving costs and fees coming from?

It's probably better to say you're buying for £165k and have a £74k deposit, unless you have savings you're using?

The rate from your current mortgage may be portable, so you could stay with Woolwich and avoid early repayment penalties. However, you're subject to their lending criteria now and whatever reserve account you had before you can probably say goodbye to.

Back to the calculations. You need a mortgage of £91k (£165k - £74k) so your agreement in principle appears to give you what you need, unless I'm missing something?

EllieMarie

Thank you for replying.

I need to borrow a further £10,000 to cover moving costs and the £5,000 increase in house price.

As far as I understand yes the mortgage is portable.

The MIP of £91,000 appeared to very vague and did not give a definate answer. On the basis of my income and deposit do you know if I meet their lending criteria?

Many thanks.