More than the "normal" amount for mortgage

nellyeff

Hi,
I'm looking to find a mortgage amount of about £120k on a house that would cost about £160k, (apparently £10k under the HR valuation)
I currently earn about £23k and my wife earns about £9-10k.
We have 2 kids, 16 and 13.
Our current home has a mortgage of £75k and is worth £115 to 120k.
We also have CC debt of about £7500.
In an ideal world, I'd be looking to get rid of the CC debt completely, and take on the larger than normal mortgage to enable us to buy the house we really want, but I know finding a lender that will take the risk is difficult. We should have an excellent credit record, having not defaulted on anything including CC payments and we've had a mortgage for the last 18 years.
So in summary:
Main earner £23k
2nd Earner £9k
Mortgage required £120k
LTV = 75 to 80%
Good (presumably) credit record

What are our chances?
Thanks in advance. :T

dimbo61

But you dont need a mortgage of £120K do you !!!
You need £120K mortgage to buy the house and £7500 to clear the CC debt and £1600 stamp duty and £4/5000 to pay buying and selling costs ( legals, mortgage set up fees, surveys, estate agents costs to sell, moving costs, ETC)
More like 85% LTV which is still possible but would a lender be happy to lend you a much larger mortgage when you cant afford the one you have ( £7500 credit card debt )
This is what they will look at so please dont take offence as we have know idea how the debt happened

rachelonna

I'm sure the last time we applied for the mortgage, there was something on there with regards to our credit cards, with an option to tick - would you like to add the money owed to your mortgage in order to repay the credit card off?

This said, it would be as if you're converting your unsecured debt to secured debt, so you would need to be careful on your emergency funds to ensure you still have enough to repay the debt if you are suddenly unemployed or any other emergencies

I would contact an independent mortgage broker who may be able to advise you on the options.

This said, do a budget first and foremost - one available on this website and then play with the figures to see what would happen when your repayments go up with the new house + factor in the emergency funding plans to ensure that you and your kids are OK

It may end up being that you have to set your sights on a smaller/cheaper house, so be prepared

But budgets first to see what is possible, I would say

Dave_Ham

Get some decent advice, see a broker and they will manage.

I am not here to judge, but everything you are seeking to do is possible from the information provided...

Ask away any additional questions..

All the best

nellyeff

dimbo61 wrote: »

More like 85% LTV which is still possible but would a lender be happy to lend you a much larger mortgage when you cant afford the one you have ( £7500 credit card debt )

I can afford the one I have, and I can, or am able to afford to "service" the debt I currently have alongside my current mortgage. I implied that, in an ideal situation, I would rather tip my monthly CC payment amounts towards a mortgage, rather than a CC debt. I didn't say anything about using the mortgage to clear my CC debt.
My CC debt is currently interest free (18 month balance transfer), and will be until April 2013, so everything I'm paying towards it just now is reducing my debt, so I'm not desperately looking to pay it off ASAP.
I did take into account selling/buying fees, but I must admit to forgetting about stamp duty, thanks for that.

Looks like in summary I'll need to speak to an Independant FA, thanks guys for all your pointers. :T