Mortgage advice needed for house move

Han2481

Hello,

We have sold our current property (STC) and are now looking for a larger family home. We have had to revise our initial budget (which was 200k based on a decision in principle back in February) owing to the change in mortgage criteria and the amount we can now lend (140K + 30K equity). We have a personal loan which is due to finish next April 2015 and are wondering whether it is better to put our moving plans on hold until we have finished paying this back. One mortgage advisor we spoke to mentioned that some mortgage lenders don't take account of a loan if the remaining term is only six months. Does this sound correct? There is £2000 left to pay - would this amount make a big difference to what a provider might lend us? The big factor in our affordability are the monthly childcare vouchers deducted from our salaries each month - the full amount at £243.00 each. Do all lenders factor this into their affordability calculations? Any advice would be much appreciated. Many thanks Hannah

ethank

Some lenders will factor this into your calculation, some will not mind. It would be more helpful if you shared income, outgoings and what you are looking to lend, LTV etc.

Thrugelmir

Han2481 wrote: »

The big factor in our affordability are the monthly childcare vouchers deducted from our salaries each month - the full amount at £243.00 each. Do all lenders factor this into their affordability calculations? Any advice would be much appreciated.

A £446 monthly outgoing can hardly be ignored.

Why not repay the loan from savings?

kiddakidda

I have had a similar situation recently. I ended up clearing some HP finance which was costing me £166 per month with less than 12 months to go. The childcare costs are the big killer in all this, My partner claims £243 in vouchers and I claim £124 and overall childcare costs are £600 pm.

The new MMR guidelines / rules will factor this into the equation. Also most lenders will be seeing of you can afford the monthly amount if interest rates go up to 7-8%.

I countered this argument with the fact that our child care costs would be dramatically reduced by the time a fixed rate expired. The response was that you may have more children so they would continue to consider childcare as an ongoing commitment.

My partner and I have 2 kids and no desire for any more, that wasn't enough for my current lender:(

MLSY

Hi speak to a mortgage broker who can look across your circumstances with all lenders to see which one can achieve your goal and the best way to achieve it