Will having savings help get bigger mortgage?

Cheryl2112

Hi all.

My husband and I are wanting to move into a bigger house but, first of all I am self employed and have to wait until next April before my accounts are taken into consideration but even then I'm only pushing 10k before expenses.

I've recently come into some inheritance and I was wondering if this would be taken into consideration if we ask how much we can borrow for a bigger house? We owe £107k and our house is worth £155k but for the house size we need (I'm a childminder and we just need more space) we are looking at £270k.

I have inherited £70k but don't actually was to use the money to put into the house, it's sat in savings at the moment.

So, in all honesty, what chances do you think we've got?

TIA cheryl

ACG

Your income is the sole thing that gets taken into account when looking at your maximum borrowing. £10k will be a maximum borrowing or around £40k. You could have a £10 million deposit but your income can only support a mortgage of a set amount.

Thrugelmir

Maybe worth paying down some of your mortgage now if circumstances permit.

Cheryl2112

Ah, ok �� so basically we will never be able to move ��

Unfortunately I can't use the money for that at the moment, but was hoping it would be taken into account as a means of adding some to the mortgage every month.

Feeling a bit like the little old woman who lived in a shoe here but I won't be able to raise my income as I am only able to have a certain amount of children at any one time.

Thank you for your responses.

R_P_W

Why can't you use your savings so you wouldn't need such a big mortgage ?

Nelly321

What about your husband's wage..?

Cheryl2112

We just didn't want to. We were hoping to keep them as savings, buy a new car in a couple of years, holiday and get some premium bonds etc, and if necessary use it to help mum if she needed any financial help (that's a whole different story)
we know we can afford £1500 a month for a mortgage, it's just proving it. So we hoped that by having this money set aside, the lenders would know that it was there if we needed it rather than actually using it.

Thrugelmir

Cheryl2112 wrote: »

We just didn't want to. We were hoping to keep them as savings, buy a new car in a couple of years, holiday and get some premium bonds etc, and if necessary use it to help mum if she needed any financial help (that's a whole different story)

Then perhaps you need to decide the order of your priorities. Lenders are far more cautious now. Most borrowers totally underestimate affordability. Interest rates aren't going to stay low for ever. So a large mortgage won't be so attractive at 6% or 7%.

Overpaying your current mortgage will save you interest and make your dream more achievable.

Nelly321

How can you afford a mortgage of 1,500 with 10k income ....

kingstreet

Cheryl2112 wrote: »

Hi all.

My husband and I are wanting to move into a bigger house but, first of all I am self employed and have to wait until next April before my accounts are taken into consideration but even then I'm only pushing 10k before expenses.

I've recently come into some inheritance and I was wondering if this would be taken into consideration if we ask how much we can borrow for a bigger house? We owe £107k and our house is worth £155k but for the house size we need (I'm a childminder and we just need more space) we are looking at £270k.

I have inherited £70k but don't actually was to use the money to put into the house, it's sat in savings at the moment.

So, in all honesty, what chances do you think we've got?

TIA cheryl

What is your HMRC declared net profit for the last two years?

What is your husband's gross annual salary?

What credit commitments do you have?

Any credit problems in the recent past?

What will the loan to value for the new purchase be?

Without considerably more information than you have supplied so far, a meaningful response is practically impossible.

A whole market broker in your area would be the best person to
discuss this and supply the information to...

HappyMJ

Nelly321 wrote: »

How can you afford a mortgage of 1,500 with 10k income ....

Tax minimization....possibly.