Mortgage Advice

jamesa007

Hello everyone, firstly thank you for any advice - love this web site and the support it has provided me over the years.

My situation....

I purchased my first property 2.5 years ago and got stung on a 3 year fixed at 6.19% over 35 years (typical for a first time buyer).

The property cost £205,000 and I put down £31,000 deposit and have been paying a little over £1k per month. My fixed ends in May next year and I want to see what options I have firstly to move away from Woolwich and secondly about moving house.... I've been on re-payment so the dent has been minimal but i'm on the ladder!

My girl friend and her daughter have now moved in with me and we have another income to add on the next application so a total earnings of; £120,000 PA.

With what we have paid off the house and looking to get a new property what deposit do we need? How much will it cost to move and what sort of property value can we go for?

Oh and to add the current property is now probably worth based on other prices and sales on the road about £225,000.

Hope this makes sense. Ideally we have seen some property of around £350,000 -£400,000 but not sure if we will get this approved.

Any help much appreciated.

Kind Regards

jamesa007

Any help on this one please?

Thrugelmir

You'll need a deposit of at least 10%. The higher the deposit the lower the interest rate you'll pay. So building up a higher deposit will be advantageous.

Remember to factor in all the legal costs, estate agents fees and stamp duty to your calculations. Stamp duty alone will be £12k on a £400k purchase. So you could be looking at the best part of £20k in costs in total.

kingstreet

When your current fix ends you'll;-

- roll onto the lender's follow-on rate for your product
- have the option of asking your lender for a new customer retention product
- have the option of remortgaging to a new lender.

If you move, you need to sell, covering the sale costs from the equity you have in your home. You'll add any savings you want/need to that equity to cover the deposit for your next home and cover the purchase costs, including stamp duty.

You'll be able to borrow around 4x your joint gross annual incomes, less any ongoing credit commitments and the cost of any dependents, maintenance etc.

You can approach your existing lender for details of its deals if you move, or can take a new mortgage with a new lender.