Will having savings help get bigger mortgage?

Foxy-Stoat_3

At a 4% interest rate over 25 years and you borrow £100,000 you will pay back £100,000 plus £100,000 in interest.....

You could save close to £3,000 per year if you cleared £70,000 off your mortgage, depending on your current interest rate and repayment charges if you have any.

Your money won't be "spent" just kept in a different place only not as readily accessible.

Lenders won't take "savings" to mean anything as at any time you could go to Vegas and put it all on "red evens" and they would be gone.....your doubled up.....there's a movie right there !!!

Paully232000

What does your husband earn, then people will be able to give you a better indication of what you can borrow on your combined income (assuming he works).

From what i can see if you used all your savings, and the equity in the house you would need a mortgage of 152K. So on the rough estimate of 4x salary you would have to have a combined income of around 38K to afford that at a push.

That of course doesn't take into consideration any other commitments you have outgoing like loans, childcare etc.
and then obviously the less you use of the 70K the more your combined income would have to be.
Without using the savings your husband would have to be earning a lot more to get a 222K mortgage.

Let_Us_See

ACG wrote: »

Your income is the sole thing that gets taken into account when looking at your maximum borrowing. /QUOTE]


ACG not exactly true and is probaly a slight slip on your part. Two different applicants with the same salary can be offered completely different maximum borrowing amounts.

dimbo61

Sorry Foxy-Stoat but your maths are wrong !
"At a 4% interest rate over 25 years and you borrow £100,000 you will pay back £100,000 plus £100,000 in interest....."
The Interest rate would need to be 6.37% to pay back £100K in interest on a £100K mortgage over 25 years.

CHERYL if you pay over £250K you will be hit with £7500+ in stamp duty so consider a property under £250K which may need some work.
£70K is in the words of NOEL off Deal or No Deal life changing money.
1 Clear any expensive debt first.
2 pay down some of the mortgage ( Without getting hit for Early Repayment Charges)
3 Maybe a newer more economical car with 7/8 seats!
4 Putting down a £100K+ deposit ( equity from current home and some of the inheritance) may get you a better deal as better Loan To Value
5 Keep a good savings pot ( consider an offset mortgage) just in case the business needs help now and then
6 Go for a long term offset fixed rate of 5 years or more ! for security