Any mortgage experts out there willing to impart advice? Please!!

edthened1

Hi there, we are a family of six living in a two bedroom house worth roughly 80,000 - 85,000 thousand. Mortgage is ten years old in one month and we desperately need to put an extension on the house (four kids in one bedroom) our mortgage is currently standing at 32,000. I am currently a full time Degree student and my wife works part time.

Now that the scene is set I will ask my questions. (oh yes there is more than one!!!)

I need to re-new my mortgage and add 30,000 to it to cover the cost of the much needed extension, is it likely that in my current position (student) that a mortgage company will entertain my idea?

I have used the mortgage calculator on which? website and payments on what will effectively be 52,000 mortgage will be too expensive, where are all the good deals?

Finally, can someone explain the differences between trackers, fixed etc....

Thanks very much for your time

hcb42

a lender would look at affordability.

the fact you say you cannot afford it, seems to answer your own question...look at some of the comparison sites for a quick look at rates. Gives an idea at least, if you have a reasonable credit history.

fixed is fixed interest rate for x years e.g. 2/3/5 normally
tracker, trackers the base rate - might be cheaper than fixed initially you have to decide if the rates went up, can you afford increased repayments, if you cannot, fixed is the way to go, depends on attitude to risk, disposal income etc.

I make it £62K, your earnings would have to be high enough to be able to repay that, to get a mortgage.

edthened1

Thanks for that, could you clarify the last wee bit of your reply please, What do you make £62k?

Thanks for your time and patience

Eddie

edthened1

Sorry, just having a blonde moment, its been a long day!!

Ignore my last question