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How much are we looking at to borrow???

fatcat123
fatcat123 Posts: 32 Forumite
Ninth Anniversary 10 Posts Combo Breaker
in Mortgages & endowments
Hello people!!!

We are coming to the end of our fixed term mortgage for what we call our "rental" house. DH is in the forces hence we live in service accomodation - hence the term rental house.

The rental house is worth 110,000-120,000 and producing 525 per month in rent we have got 28,000 left on the morgage, (we have made the most of the overpayment facility)The household income is 34,000 from DH wages, DW is curently not earning as we have just moved and she had to give up her job. When DW dose start to earn a wage i would guess it would be about 12,000.

The plan is to leave the rental house where is it and purchase a "forever" house which we could move into in a few years once DD finishes at primary school (untill then i would look at renting it out again) - she has moved schools three times in three years and we WILL be stable now for the forseeable future.

So how much are we looking at ??? the morgage does have a few months to run (four months) so we are just looking at our options!!

thanks

Comments

  • mrginge
    mrginge Posts: 4,843 Forumite
    About £327,548.
  • fatcat123
    fatcat123 Posts: 32 Forumite
    Ninth Anniversary 10 Posts Combo Breaker
    What!!! cough cough!!!

    i would of never of thougt that would be the amount!

    May i ask how you came to that figure, i am sure you are correct but i woudl just like to know!
  • bigadaj
    bigadaj Posts: 11,531 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper
    The response above was tongue in cheek methinks.

    How much deposit would you have, or would you just be drawing equity from the rental house?

    Put your numbers into the mortgage calculators of some of the big lenders and that will give you a good idea.
  • michelle2008
    michelle2008 Posts: 601 Forumite
    This is an odd question. Are you asking how much lenders would be prepared to offer or how much we think you could afford?

    would be best to run your stats through a mortgage affordability calculator.

    Edit - Crossed paths with previous poster!!
  • fatcat123
    fatcat123 Posts: 32 Forumite
    Ninth Anniversary 10 Posts Combo Breaker
    Humm i did a doube take on the first response!! haa haa

    we have got 10 grand which could be used for extra deposit, but i would like the idea of having one mortgage to cover both properties. I was asking regarding the lending limit that lender would be prepared to offer. from that we can sit down and work out what we can afford!!
  • mrginge
    mrginge Posts: 4,843 Forumite
    Just to clarify. I was making it up.
  • bigadaj
    bigadaj Posts: 11,531 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper
    mrginge wrote: »
    Just to clarify. I was making it up.

    Shame, you'd have had a career in banking until 2008!
  • fatcat123
    fatcat123 Posts: 32 Forumite
    Ninth Anniversary 10 Posts Combo Breaker
    haa haa --- i came here to ask for some figures... and i dont understand why you would do that. We are all different i suppose...........
    mrginge wrote: »
    Just to clarify. I was making it up.
  • ValHaller
    ValHaller Posts: 5,212 Forumite
    1,000 Posts Combo Breaker
    fatcat123 wrote: »
    haa haa --- i came here to ask for some figures... and i dont understand why you would do that. We are all different i suppose...........
    Well you asked for figures and you got one ....

    I think that the basic problem is that you are not yourself clear what you are asking. If you actually framed the question so you understood what you needed to know, you would probably have the answer yourself.
    You might as well ask the Wizard of Oz to give you a big number as pay a Credit Referencing Agency for a so-called 'credit-score'
  • somethingcorporate
    somethingcorporate Posts: 9,449 Forumite
    You will not get a single mortgage to cover multiple properties.

    Do you intend to own them both, keep one as rental etc?

    Just try any banks mortgage calculator and put your figures in to get an idea of what you could borrow. If you only have £10k to put down on your new house, unless you release some equity from the current rental house, you will not get a good rate as will be >90% LTV.

    Perhaps go and have a chat with a broker when you are serious about looking for a new place to work out the figures.
    Thinking critically since 1996....
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