Mortgage dilemma

ste1212

Just after some advice.

My wife owns a property abroad with family. She owes approx £135K on it and pays about £800/ month. She is trying to sell at the moment but the market inst doing to well.

We would like to buy a family home in London.
My wage: £50K /year, £2,700/month
Her wage: £21K/ year £1,400/month
Expenses: £400 childcare / month
No outstanding debts.

I have looked at some mortgage calculators and it seems that as a joint mortgage the most we could borrow is £185K. I am guessing this is because of the monthly repayments to the other property. If it is just me as the applicant on the mortgage, it looks like we can borrow about £195K.

We have about £35K saved up and are working hard to save more. We would ideally like to borrow about £250K and I have done the monthly sums and this is affordable for us.

We cant rely on the property abroad selling as I dont think this will happen any time soon.

Just wondering if anyone had any advice or suggestion? Please let me know if you need any more info.

Thanks in advance.

Dave_Ham

What country is the property in and is the mortgage foreign or UK based?

My gut feel is that you can borrow more than this, but dependent upon the further details

ste1212

Thanks so much for the quick reply.

Property is in Australia. The mortgage is Australian based. In retrospect a very bad decision as bought in 2006 and the Aussie dollar has been so strong against the pound. Also interest rates there are a lot higher. Fingers crossed for some positive changes.

Let me know if you need anything else.

Cheers

Dave_Ham

Many lenders are only going to be interested in UK mortgage commitments. I cannot imagine this appears on your credit file?

ste1212

Thanks again.

It doesn't show on her credit file - have checked all recent credit reports. But it will show that £800 leaves her account every month and goes to Australia.

We got a MIP from Halifax based on both of our wages and not taking in to account repayments for the house in Oz (this was when we thought it would sell) and we could borrow about £330K (a lot more than we need!).

It feels kind of wrong somehow...But I have done the sums and we can afford to move.

Dave_Ham

Not all lenders will want to scrutinise accounts and if they did I assume you would get some sort of income to balance this figure somewhat.

I would think this is achievable, but lender selection will be important.

ste1212

Just done more exact sums.

She pays £840/ month (repayment mortgage) and rental income is £250 per month.

Any suggestions of lenders? Would we be best going through a broker?

Thanks very much.

getmore4less

What price are you trying to get for the house you are trying to sell

Might be time to cut the ongoing losses or review selling and look at renting it out.

Dave_Ham

Definitely a broker case, although you could probably glean from this forum which lenders will definitely be best to avoid..

Typically the ones with the absolute top tier rates..

Thanks for the figures - ouch..

All the best

ste1212

Thanks Dave and getmore4less.

They are looking to get a lot less than they paid for it! It is up for sale by auction but feedback not great so far. Looking at a loss but we are at least thinking we can then cut our losses and run. Have been renting it out until last month.

Cheers

Conrad

You'll get better rates and deals from direct lenders. Any reasonably intelligent individual could source her mortgage without too many issues. The worst that could happen is a lender declines on affordability if they viewed bank stats, but this is no issue, just btry another. Don't fall for any nonsense that the odd decline will cause you issues. For one thing it won't be registered as a decline on your credit records.