Selling but cannot get same borrowing again ?

Bella79

Hi all,

WE have a house with a 140k repayment mortgage, the house is selling for 225k, since we orig took this mortgage my partners income has dropped a lot, but we still manage fine and not missed a payment, where looking at propertys about 200k to buy 80k down deposit 120k mortgage, but our combined income is now only 23k, however we have No other debts and manage ok, our current morg company wont loan us more than 100k, is it possible with another provider?, or do we have to face that, that is it?

Our income is 1900 roughly per month our current morg is only 620pm so i dont see a probem ?

Thankyou guys x

beecher2

120k mortgage on a 23k income is a salary multiple of over 5 - can't see that happening.

Presumably you're only paying £620 at the moment because rates are low - at a guess you're on 2.5%. You can't plan long term for rates to be so low - if rates returned to anywhere near normal you'd be looking at half your salary going on the mortgage.

Thrugelmir

beecher2 wrote: »

Presumably you're only paying £620 at the moment because rates are low - at a guess you're on 2.5%. You can't plan long term for rates to be so low - if rates returned to anywhere near normal you'd be looking at half your salary going on the mortgage.

More than double the rate to 5.5% and that's well over half. Simply unaffordable.

Keep repaying your existing mortgage. Make hay while rates remain low.

You are incurring a lot of expense to reduce your mortgage by £20k. Any possibility of finding a cheaper property?

Bella79

Thankyou for your advice so far, theres no immediate reason to sell,other than i want to be nearer to my family, so you would recomend staying where we are? as there would be a redemption fee to pay for selling now of £4200. Our rate is due to drop again in june next year (this can change intreast rate) but at the moment there forecasting it to drop to £470pm as this is also when our 3 year fixed deal ends with them that we are currently on.

There are cheaper houses ofcourse, but tbh i dont like them or would be a too big of a drop size wise when where used to this.

So you would reccomend staying here and keep plugging away at this mortgage? and refix again when/if the rate drops in 10months time ?. but i do want to eventually move back to my family, so when should we be thinking of doing this money/morg wise?

Thankyou in advance

Thrugelmir

Bella79 wrote: »

There are cheaper houses ofcourse, but tbh i dont like them or would be a too big of a drop size wise when where used to this.

When your income drops then compromises have to be made.

No easy solutions. Except keep plugging away at the mortgage to narrow the gap. As you know the figure you can obtain on a new mortgage.

Bella79

Thrugelmir wrote: »

When your income drops then compromises have to be made.

No easy solutions. Except keep plugging away at the mortgage to narrow the gap. As you know the figure you can obtain on a new mortgage.

Thankyou for your advice, i think your right, we are just going to have to stay here and plug plug away to try and make up the 20k gap, unless we are willing to shift to a much smaller home.

But then im scared that we have buyers now, what if we dont sell, intrest rates go up, then we will be in a house we cant afford arghhh