Looking for an idea of how much I can borrow

mrsnobody

Evening all

Just looking for an idea of what amount of mortgage I could obtain. I'm going to be separating from my partner shortly and looking for a property on my own. My salary is £22250, with bonus potential of £2,000. The bonus isn't guaranteed but has been paid for the last 2 years. I'm employed full time, been with employer 2 years.

I have 2 children 16 and 14 who will be living with me. I have court ordered maintenance from my ex husband which is supposed to be £580 per month, however he has not paid this for over a year due to his business failing. I assume that no lender will take this into account as it would be clear from my bank statements that it is not being paid currently? I have not pursued this legally as he genuinely does not have the money at the moment, is on JSA and looking for an employed position. I fully expect the maintenance to recommence albeit at a lower amount once he has a job (he always paid on time from 2004 when the divorce was finalised up until last year).

I have excellent credit history, no defaults/late payments whatsoever and I have 3-4 credit cards which are well managed.

Any mortgage experts able to give me a ballpark figure?

rising_from_the_ashes

Have a go at this http://www.moneysavingexpert.com/mortgages/how-much-mortgage-borrowing

It's unlikely they would include your maintenance - as you say it's not regular income nor your bonus as this isn't guaranteed.

Re the maintenance, you really wouldn't want to include this anyway - there was a poster on another thread whose mortgage had incl this amount and her ex then lost his job & could no longer pay it and ..... she cannot afford the mortgage payments without this money - much better to make sure everything is affordable on your income alone in case of future problems. HTH

Thrugelmir

Balance on 3-4 credit cards?

heathcote123

rising_from_the_ashes wrote: »

Re the maintenance, you really wouldn't want to include this anyway - there was a poster on another thread whose mortgage had incl this amount and her ex then lost his job & could no longer pay it and ..... she cannot afford the mortgage payments without this money - much better to make sure everything is affordable on your income alone in case of future problems. HTH

and with the kids being 14 & 16 it's not going to be for too much longer anyway.

ACG

Whatever your monthly repayments are - reduce that from your annual income.
Multiply that by 3.5 or 4x your income. That will give you a rough guide.

I would stick to 3.5 as a maximum due to you having 2 children.

mrsnobody

Thanks for the replies so far. Thrugelmir the majority of the cards have nothing on them, or very small balances. I do have £450 on an Argos card which is for a buy now pay later item. This will be cleared in July and I have already saved the money for this. I do use the cards regularly but tend to pay them off each month. I was hoping to borrow about £85k ... is this a bit too optimistic?

Caz3121

how much of a deposit do you have

HappyMJ

mrsnobody wrote: »

Thanks for the replies so far. Thrugelmir the majority of the cards have nothing on them, or very small balances. I do have £450 on an Argos card which is for a buy now pay later item. This will be cleared in July and I have already saved the money for this. I do use the cards regularly but tend to pay them off each month. I was hoping to borrow about £85k ... is this a bit too optimistic?

It's possible but do you have a deposit? You really must have a minimum of a 10% deposit i.e £9,500 deposit on a property worth £95,000 and borrow £85,500. You will also need more money for the fees involved in buying this house maybe another £1,000 to £2,000 on top.

If you don't have the deposit then I wouldn't even think about it until you have it.

edit:snap with caz3121...

mrsnobody

Yes I will have around £175k deposit. Looking to buy a small house or flat at around £260k (I live in a pricey area!). Also have some savings for stamp duty, fees etc. Ideally would like to get under £250k due to stamp duty threshold but at this price I will struggle to get anything big enough for me and two teens!

Dave_Ham

You will definitely get to these numbers, other things being equal do not worry.

Consider the fact that your circumstances will change so ensure there is some flexibility in there. Kids moving out, new partner etc. will all play a part some take some good advice.

As you will already be aware under £250k makes a significant financial difference, both in the cost of buying and the speed/ease of sale in the future.

Good luck

mrsnobody

Thanks Dave Ham, that's good to know. Just one more quick question. Myself and soon to be ex partner are currently on C&G SVR at 2.5% - I assume there's no way this could be done as a port, as it would be a new property in my name only? It'll be a shame to lose this great rate!