Mortgage advice appreciated

tobycgraham

Hello,

would really like appreciate any advice regarding my current mortgage situation. We bought our property in Jun 2007 for £182,500 with a 2 or 3 year fixed 110% mortgage from Northern rock (we're now on the variable rate). Our latest mortgage statement (June 2011) shows the closing balance of the secured loan as £165,639, the unsecured as £18,220 (£183,859 total). My partner wants to move closer to her parents, into a more expensive property. Her parents are looking to invest in the property we would be moving into to. I've just had our house valued at £180,000. If we were to achieve this figure & if her parents were to invest between £30k to £40k, how expensive a property could we afford/would northern rock accommodate us?

thanks

Thrugelmir

If you are with NRAM, which I suspect you may well be. Then you will need to seek an alternative lender.

You may wish to consider reducing your existing mortgage further before moving. As on the figures you've quoted you'll be using the gift to clear the existing mortgage debt and funding the move.

tobycgraham

Hi, yes its NRAM. Is there no chance of porting the existing mortgage? thanks

kingstreet

NRAM will let you borrow exactly what you have now and no more, assuming you have sufficient income and affordability. You should contact them for details as they pretty much do their own thing.

http://www.nram.co.uk/en/customers/mortgages/other-enquiries.aspx

Thrugelmir

tobycgraham wrote: »

Hi, yes its NRAM. Is there no chance of porting the existing mortgage? thanks

NRAM are no longer writing new mortgage business.

tobycgraham

Thrugelmir wrote: »

NRAM are no longer writing new mortgage business.

Sorry, does this mean I wont be able to port it? thanks

Thrugelmir

Porting is a term which refers to the terms and conditions attached to a mortgage, e.g. interest rate.

When moving house you will always need to apply for a new mortgage.

NRAM are no longer offering new mortgages. So you would need to change lender to obtain a better deal if you don't move house.

tobycgraham

ok, thanks. So, assuming we were to sell at £180k and we paid off the left over £4k, what would we be able to afford to buy? I've estimated fees of around £6k, so hopefully we would be bale to keep the negative equity & fees to around the £10k mark. My partner and I have a combined income of £85k and a possible deposit of £30 to £40k. I've looked at a few comparison tables on money supermarket and it doesn't look like there are any products around the 80-85% range. They look to be either 75% (which i cant reach) or 90%. Would I get a mortgage for say £249,999 with a 10% deposit, would having having 15% make a difference? cheers

Thrugelmir

On a combined salary of £85k you should be able to make sizable inroads into your existing mortgage in a short period of time. Improving your deposit and reducing the LTV will greatly increase the choice of mortgage available to you.

Meeper

On a combined salary of £85k, a mortgage of £250k doesn't seem excessive, depending on some other factors.

dimbo61

So you are going to pay £275K for a property and also nearly £10K in stamp duty!!! plus other costs.
You have lived in your current property for 4 years and paid off £16/18K and now you want to take on a bigger mortgage! Can you afford to ?