Move & Remortgage Advice

googyflip

Hi all, hoping for some advice on best avenues for moving to a larger property. We've been looking about the market for a year or so and would love to move as we are needing more room with two young kids, but current market seems to be a stretch too far...

The story so far

Currently in a 3 bed starter home (~£120k value)
Current mortgage ~£80k so approx. £40k equity & 17yrs remaining
Household income ~£45k
Loans/card debt. ~£12k

We would like to move to a larger property in the area (North East) and would probably need to look around the £180k-£200k mark to find what we are after. Looking around we are struggling to decide the best route for finding what options are available to enable us to get to where we want to be.

I do prefer repayment and fixed generally, but we have also looked at interest only to see if would enable us to move (due to household income should increase as the kids would be in school full time and the two of us will be back to full time work instead of just one at the moment).

Would an IFA be a good route, should they have be able to consider our current situation and assist in getting where we would like to be?

Thanks in advance for any advice

Thrugelmir

Do you have any savings to fund the move?

What's the split of unsecured debt?

Let_Us_See

Do you have additional funds towards the deposit for the proposed purchase? If not, the current £40k equity will be unlikely to achieve interest only option, and therefore plan around repayment basis. With £12k current commitments, plus additional family overheads, you may struggle to reach your proposed purchase level.

Whilst I have nothing against IFAs, I would recommend a mortgage adviser/broker for their current day to day knowledge.

Jimbo1976

You won't get an interest only mortgage without having a repayment plan already in place. Lenders don't accept the "we will change to a repayment mortgage after a couple of years when the kids go back to school" story.

It is worth speaking to a professional about a new mortgage as they would be able to see if your proposed move is feasible. As Thrugelmir says you will need some money to fund your move and if this comes out of your equity, then your deposit gets smaller.

A bank or building soceity will have its own tied salesforce, some of them give advice (ie they do a fact find to see what is most appropriate for you then make a recommendation), others offer a non advised service (here is a list of the rates, you choose), some do both.

A mortgage broker or an IFA will have access to a much wider range of products from a variety of lenders and will mostly give advice.

kingstreet

Talk to a whole market or independent broker. The Clydesdale Bank has recently launched a broker-only "3 year interest-only to repayment" offer.

The broker will also go over other options for you too.

googyflip

Thanks for the replies all.

Kind of what I thought to a certain degree.

Answering some questions, the split on secured and unsecured is £80k mortgage and £7k unsecured loan + £5k ccard

We don't have savings at the moment to help fund a move.

The reason for the question about an IFA is while I'm pretty saving and am reasonably happy I'm getting good rates on loan/mortgage etc. I'm always open to more expert help who may have better advice.

ta

Thrugelmir

googyflip wrote: »

Answering some questions, the split on secured and unsecured is £80k mortgage and £7k unsecured loan + £5k ccard

We don't have savings at the moment to help fund a move.

Start with repaying the debt first.