Mortgage Problems Upsizing To Bigger House

fonzyg50

Hi everyone

i would like to share my concern and hopefully i can get some advice back.

i'm in a 2 bed house( bought 2006) with my wife and 2 kids,we are expecting a 3rd in sept 2012 so we need to move to a bigger house with more space.

we had our house valued at £155,000 and found a 3 bed for the same price, i rang up the mortgage company to let them know i want to move and keep the same outstanding mortgage of £125,000.

Because my wife was made redundant in 2008 i can only borrow £56,000 as i am the only one working, i explained that i have payed on time and never missed a payment. ( my salary is 20,587 )

how can they say this if I've been paying every month. they told me the only way is my wife to work full time but its never gonna happen because of our kids and baby coming soon.

so is there any ideas, nationwide said they will put this to the underwriter.

thankyou for reading this

Thrugelmir

No chance on your salary of borrowing an amount that large. The lender would be deemed irresponsible if they did.

You need to pay off debt and increase your equity.

_Andy_

No lender is going to do that much on that salary

Dave_Ham

Ok - you either must have a low credit score, or other credit commitments declared but not in this post as that amount is too low.

As stated above, albeit a bit more sympathtically you are going to struggle here.

Does your salary have any bonus, commission, allowances that potentially could be added?

Some lenders will include other sustainable forms of income and this may make up some of the shortfall...

Any other income or extra information that could help or otherwise the "computer says no" boys will have a field day...?

fonzyg50

hello
thanks for your comments

i have £16,000 savings
£3,000 in isa
£2000 in another bank
so i have £21,000 in savings

i pay my mortgage on time

my partner gets child tax credits for both kids at £90 pw & £130pm

i have no other debts apart from the mortgage, we had to sacrifice a lot to make ends meet but we are doing ok for now.

fonzyg50

Dave_Ham wrote: »

Ok - you either must have a low credit score, or other credit commitments declared but not in this post as that amount is too low.

As stated above, albeit a bit more sympathtically you are going to struggle here.

Does your salary have any bonus, commission, allowances that potentially could be added?

Some lenders will include other sustainable forms of income and this may make up some of the shortfall...

Any other income or extra information that could help or otherwise the "computer says no" boys will have a field day...?

i do overtime twice a month at £210 extra

brit1234

The others are correct. I think you will have to wait till your partner gets another job. You should also not rely on overtime as it could easily disappear.

Thrugelmir

fonzyg50 wrote: »

i have £16,000 savings
£3,000 in isa
£2000 in another bank
so i have £21,000 in savings

Do you pay a higher rate of interest on your mortgage than you receive on your savings?

If so speed up repayment of your mortgage.

SG27

I had an aip with nationwide some while ago to check borrowing amount on just my salary. Based on my earnings alone with 50% deposit they would lend £106,000. My income is £22,500. So I dont think you will be able to borrow that much. I wouldn't be comfotable with such big mortgage on my own either.

advice_please_2

SG27 wrote: »

I had an aip with nationwide some while ago to check borrowing amount on just my salary. Based on my earnings alone with 50% deposit they would lend £106,000. My income is £22,500. So I dont think you will be able to borrow that much. I wouldn't be comfotable with such big mortgage on my own either.

what's an aip?

sorry to hijack, but i'm on about £48k, wife is on maternity leave and thinking of upsizing and would like to know how things are myself

Thrugelmir

Agreement In Principle. A basic enquiry as to whether and how much a lender will advance for a mortgage.

This is prior to the full application process so does not guarantee that a mortgage will be offered.

If you have specific question, start a new thread.