Is this realistic?

becominganobsessivesaver

Ideallly I'd like to move to a bigger house towards the end of the year. We bought for £128k in 2006 with a 5% deposit, but luckily ended up on a base rate tracker when the fixed rate deal ended, so will probably have £96k outstanding by September. Realistically we may get £110k for our house - so £14k towards the deposit. We've also got £30k in savings (which we may be able to increase - depending on my husbands business). My DH is now self employed, so we ideally would like to base any mortgage on my income of £45.5k alone (but obviously have us both named on the mortgage). We have 2 children, no debt and childcare is generally paid for by my work in addition to my salary. Are we likely to get a 4x salary mortgage (ie £180k) on a decent rate, at approx 85% ltv? Potentially we may want to port our mortgage and take additional lending with the Woolwich.

Our credit histories should be pretty good, we've never had any issues applying for credit and live off credit cards (clearing the balance every month.

MRG

You can comfortably get 4.5x salary with most lenders. If your other half has been self employed for 2 years or more then that can be used as a valid income.

Have you checked that you will have £96,000 outstanding?

Just remember to include:
- selling costs 1.5%-2%
- Stamp duty which up to £250k is 1% (For you purchase)
- 2 Lots of Solicitor costs (Sale and Purchase)

If you can port then certainly speak to Woolwich/Barclays and see what they can do, but I have seen some posts on here that it wasn't a pleasant experience.

becominganobsessivesaver

MRG wrote: »

You can comfortably get 4.5x salary with most lenders. If your other half has been self employed for 2 years or more then that can be used as a valid income.

Have you checked that you will have £96,000 outstanding?

Just remember to include:
- selling costs 1.5%-2%
- Stamp duty which up to £250k is 1% (For you purchase)
- 2 Lots of Solicitor costs (Sale and Purchase)

If you can port then certainly speak to Woolwich/Barclays and see what they can do, but I have seen some posts on here that it wasn't a pleasant experience.

Thanks for this. We should have £96k outstanding, we had £100k in September and our interest is only 1.5%, therefore only £1,500 or the years repayments will be interest. DH has only been self employed for a year and made a loss (due to capital investment) in year 1. He will be profit making going forward, but if I can borrow on my salary alone I'd prefer that (think it will just make life easier!)