Moving house with new mortgage circumstances

ahon2010

My wife and I currently own a house which we have a joint mortgage on. We have been in the current house for approximately two and a half years now (our first home) and have always made our repayments no problem. Our first child was born about a year and a half ago and my wife stopped work after her maternity leave. We have continued to repay our mortgage with no problems since but are now looking at the possibility of moving house but have no idea whether we will be in a position to do so financially.

Would we be able to keep our current mortgage despite the change in circumstances as we have been making repayments without a problem? Would a mortgage lender take into account our past record when offering a new mortgage or would it be solely based on my salary?

I'm sure our current mortgage lender would be able to answer these questions but we have been hesitant to do so as we do not want to have our current mortgage revoked due to our change in circumstances.

Any help or advice would be greatly appreciated.

kingstreet

It's a whole new application, based on your current circumstances regardless of you going to your existing lender, or a new one.

Use different lenders' online affordability calculators to see what's possible.

Some lenders will take working/child tax credits and child benefit into account on top of your income, but you will have to declare your two dependents, on top of any credit commitments for affordability purposes.

Conrad

Past conduct matters but above all else the new mortgage has to be affordable in terms of your current salary and outgoings.

If you are concerned about dropping yourselves in the mire, you might want to get a broker to re-apply on your behalf as they might have the requisite experience to ensure you get the outcome you desire.

Good luck.

somethingcorporate

Would you need to borrow more to move?

If so they will re-do underwriting which involves supply and evidence of supporting information (salaries etc).

If you are going to change lender then it would be a brand new application and all details would need to be supplied.

Payment record will not have an impact on repayment costs, APR etc or amount you can borrow (that will be down to deposit and salary) but obviously a good record will help with pass/fail criteria and your "score".

Just call up your bank, they won't revoke your mortgage due to a change in circumstances.

ahon2010

No, we'd be looking to borrow a similar amount or possibly less as we'd be relocating to a part of the country where property prices are lower.

Dave_Ham

Unfortunately if borrowing more/less or the same, if you are buying a new property; a new mortgage application will need to be completed and applied for on your current circumstances.

All the best