Help please

jamiestoddart

Just viewed a house this afternoon and really liked the look of it, it's on the market for 158k and were looking to put ours on the market, tops we will get is probably 150k. ok here's my problem

we have a joint mortgage with ING, however since taking the mortgage out my wife has given up work to look after the 2 children. Before we took the mortgage out i looked at applying for the new mortgage in my name only, however they would only lend me 78k and we needed to borrow 90k, so we took it on as a joint application for 90k before my wife left work.

We would probably need to borrow an extra 10k and i dont know what to do as if i wanted to add to my current mortgage they would probably require proof of income again.

Please help!

homer_j_3

you need to post some details about income and outgoings for us to indicate whether you will have a prob. Are you tied into ING?

jamiestoddart

i earn 20k p/a have only just taken the mortgage out with ing so i presume will be sort sort of tie in

Scott

You'll want to check with them if there is any tie in, not all mortgage products have one. Or check your documentation.

MortgageMamma

Does your wife get WFTC? If she does, then some lenders will count this as income, and that could boost your borrowing power.

jamiestoddart

i'll check but we have a 2yr fixed rate at 4.95% so thats pretty good!

homer_j_3

there are lenders that will lend you 90k if you have little or no other credit commitments. I would say that you need to do what Scott says and check your paperwork that you got when you took the mortgage out (think its section 10 on the key facts document).

Its then trying to do the math really

jamiestoddart

the fee to ing would be 1%v of the outstanding loan, therfore it will be around £900

jamiestoddart

jamiestoddart wrote: »

the fee to ing would be 1%v of the outstanding loan, therfore it will be around £900

i'll be looking to borrow another 10k on this, so would need to borrow 100k, any ideas?

Scott

think its section 10 on the key facts document

It is indeed, I think titled "What happens if you do not want this mortgage any more?".

I do know that companies offer different multipliers and use different assessment techniques depending on the source of the application (i.e. whether submitted by a branch, a broker or direct application) so remember to explore your options fully.

homer_j_3

there will be an admin fee also I am guessing so you will probably need a deal that can save you 1k if you are to move mortgage. If ING wont lend to you on the new house then its not about saving money, its about getting the best deal from the lenders that will consider a 5 x income stretch.

You will also have to consider selling fees (estate agency costs, legal costs) and buying fees (Val fees, arrangement fees, legal fees, stamp duty etc) out of your equity so will you now need more than 100k?