Moving?

shaneshaneshane

Hi people.

A bit of clarification on how moving works please...

Status: Bought a house with my partner (2 years ago, both FTBers).We were able to get a mortgage for upto £160k, we took a mortgage of 120k in the end, we are now looking to move, looking at about 25k equity in total based on lowest we will take for a sale (We have had the property valued and based it on that).

Here is the issue, we have had a baby girl since moving into our first home and my partner now only works part time (Lower total income than 2 and a bit years ago when we were offered 160k)

The house we are looking at is 170k, I know we can afford it (been overpaying this mortgage and the total paid per month would be more than the new mortgage with no overpayments, this is on our lower wage too), my question is.. how would the bank view it?

Is it easier to up a mortgage than a new mortgage or is it the same process? If it's the same process I should imagine we would be refused based on the lower income?

Thanks in advance.

dimbo61

The mortgage market has changed in the last 2 years and with your partner now working part time you may struggle to get the mortgage amount you want.
Need to talk to your current lender and have a look on a couple of lenders websites to get an Idea of how much they will lend you on your joint incomes

_Andy_

shaneshaneshane wrote: »

Hi people.

A bit of clarification on how moving works please...

Status: Bought a house with my partner (2 years ago, both FTBers).We were able to get a mortgage for upto £160k, we took a mortgage of 120k in the end, we are now looking to move, looking at about 25k equity in total based on lowest we will take for a sale (We have had the property valued and based it on that).

Here is the issue, we have had a baby girl since moving into our first home and my partner now only works part time (Lower total income than 2 and a bit years ago when we were offered 160k)

The house we are looking at is 170k, I know we can afford it (been overpaying this mortgage and the total paid per month would be more than the new mortgage with no overpayments, this is on our lower wage too), my question is.. how would the bank view it?

Is it easier to up a mortgage than a new mortgage or is it the same process? If it's the same process I should imagine we would be refused based on the lower income?

Thanks in advance.

How on earth can anyone say if its possible when you haven't stated what your income actually is?

shaneshaneshane

dimbo61 wrote: »

The mortgage market has changed in the last 2 years and with your partner now working part time you may struggle to get the mortgage amount you want.
Need to talk to your current lender and have a look on a couple of lenders websites to get an Idea of how much they will lend you on your joint incomes

Thank you for the helpful reply.

Andy, our current level of income is not important, you have all the information you need if you read my original post correctly.

Besides it was more questioning the process of moving and how banks view increased lending rather than a mortgage application.

GMS

shaneshaneshane wrote: »

Thank you for the helpful reply.

Andy, our current level of income is not important, you have all the information you need if you read my original post correctly.

Besides it was more questioning the process of moving and how banks view increased lending rather than a mortgage application.

Of course income is important. Vital in fact. No lender including current one will allow a purchase without ensuring affordability

Annisele

Your current level of income is relevant.

It sounds as though you're thinking you can just move your existing mortgage to new property. It doesn't work like that - your current mortgage is secured on your current home. New home means new mortgage.

Depending on your existing lender's T&Cs, you might be able to "port" your existing mortgage - but that means you keep the same terms, it doesn't mean that you can get away without making a new application. For a start, the lender might not lend on the kind of property you want to buy.

_Andy_

shaneshaneshane wrote: »

Thank you for the helpful reply.

Andy, our current level of income is not important, you have all the information you need if you read my original post correctly.

Besides it was more questioning the process of moving and how banks view increased lending rather than a mortgage application.

Of course it's important, hence why I'm asking.
Fine, if you want to be a muppet about it then feel free, you won't get any meaningful advice.

shaneshaneshane

_Andy_ wrote: »

Of course it's important, hence why I'm asking.
Fine, if you want to be a muppet about it then feel free, you won't get any meaningful advice.

Well actually Andy, I wasn't asking MSE users if I would be accepted for a mortgage based on x amount of borrowing vs my income, that is a question for the banks, I was asking MSE users how the mortgage process when moving works...

Annisele wrote: »

It sounds as though you're thinking you can just move your existing mortgage to new property. It doesn't work like that - your current mortgage is secured on your current home. New home means new mortgage.

Depending on your existing lender's T&Cs, you might be able to "port" your existing mortgage - but that means you keep the same terms, it doesn't mean that you can get away without making a new application. For a start, the lender might not lend on the kind of property you want to buy.

Perfect Annisele, that is the exact information I needed to know, I wasn't sure how it all worked.

So it is a new application, which means for us chances are we will be refused with the significant drop in income compared to where we were 2 years ago, best put some plans into action then to raise our P60's!