Mortgage on new home

RhysH

Hi all,

We want to move ASAP into a new build, I earn 33k and partner only approx 10k basic but usually more per month and only on casual contract which has kept extending for last two years. If we have 47k to put down what's the max we are likely to get. Very good credit rating only loan has about 7k left. But never in overdraft, bad credit etc.

dimbo61

Sorry RhysH but what is the question?
What price are you paying for the New Build?
Is the £47K your deposit or the total money you can afford ?
Where have you got your savings ?
Have you spoken to your lender/bank/mortgage broker to find the best deal for you!

Thrugelmir

Why not pay the loan off?

RhysH

Hi dimbo, sorry for lack of clarification as I was rushing when typed the question.

Basically looking at a new build, got 20k savings and the rest hopefully in equity of current house (waiting for exact valuation, as planning px scheme on new build). New house is approx 220k but of course waiting to see what deal can be done. Just wondering if highly unlike to get mortgage for 170k?

As we really want to move ASAP so this is only route that will enable us.

Thrugelmir

You may be offered a good p/ex price. However the valuation of the new build build may be lower than the purchase price.

Developers like to keep the selling price of their houses high.

kingstreet

Lenders use the monthly payments for a loan in affordability calculations, not the outstanding amount.

For example, if you earn £43k joint and the monthly loan repayment is £200, you can expect a mortgage amount of around £162k without too much trouble. However, you need to bear in mind any other credit commitments, maintenance payments and the cost of any financial dependents will also impact this calculation.

RhysH

Hi;

Yes understand the "extra" value they put on my house will be the "over" valuation of the new house. However think this is only option we have to move.

Will wait and see the valuation on my house as would really need around 160-170k mortgage. Only finance we have is loan as state, and £300 (total) left on interest free which is due to end soon.

My other half regularly earns more than basic would this take into account for mortgage or not? ie now she is part time but she has been able to get full time hours until March 2013 which takes monthly take home to £1,100.

kingstreet

Lenders use gross annual income to calculate borrowing power, taking off the cost of credit commitments, maintenance, dependents etc.

Gross annual income may include a portion of things like overtime, bonus and commission, based on the evidence which can be provided and the duration/coverage of that evidence.