Mortgage Query

boggler

Hi,

I would like advice about getting a mortgage. I am currently living in a property worth £350k and have £190k left on the current mortgage. I also have about £150k in savings. I would like to move to a property worth £470000. I have a slightly complicated annual income of £16000 from a 0.5 FTE contract, from one university on a permanent contract. I also earn another £25000 from two other universities but on yearly contracts. So £41000 in total. Is my plan to move realistic, as in would I get a mortgage?
To slightly complicate matters, I bought my current property by applying for a mortgage with my wife but she is now a full-time mum so any new mortgage would be in my name only. However, all my salary payments go into our joint Lloyds account which has all our major outgoings too. Would that be an issue? Would it be looked upon more favourably if I were to receive my income into my own Lloyds bank account solely in my name?
Thanks in advance for any advice!

amnblog

All sounds tight and tricky but possible.


One where you need to get some advice from an experienced broker.

pinkteapot

What size mortgage do you want?

We moved from a £250k house to a £470k house and it cost us £22k in fees, stamp duty, etc. So let's assume your move cost about the same.

You'd need a mortgage for about £182k, if you were to be left with no savings afterwards. (£470k - (£350k-£190k) - £150k + £22k).

If you wanted £20k left in savings as a buffer, you'd need a mortgage for about £202k.

What's the minimum amount you want left in the bank after the move? That determines the minimum mortgage you need. Then people can advise if it's possible on your income.

Thrugelmir

boggler wrote: »

To slightly complicate matters, I bought my current property by applying for a mortgage with my wife but she is now a full-time mum so any new mortgage would be in my name only.

You'll still need to declare your dependents on the application form. Not being named on the mortgage isn't a way of avoiding affordability issues. So not a complication at all.

pinkteapot

Thrugelmir wrote: »

You'll still need to declare your dependents on the application form. Not being named on the mortgage isn't a way of avoiding affordability issues. So not a complication at all.

Which also means there's no benefit to changing your banking arrangements - your joint account is fine. Though these days they will look at your bank statements and your patterns of spending, so at least be aware of what goes in and out and how it looks!

OneEngland

Some lenders will treat income from second/third/fourth jobs the same as primary income providing they are in the same occupation, i.e. multiple Lecturing contracts etc. If you work as a Fireman in the week and then clean toilets on Saturday night they will not often take the second income into account.
There are certainly options there, but need to factor in which lender will be most flexible on additional jobs.
With regards to your wife, many people would still opt to go on the application as less messy if something was to happen to either of you. You don't need to be earning an income to be included on the mortgage. Again a decent broker will check the affordability prior to submission. If she isn't on the application she will still be considered as a financial dependent along with your children
Good luck

boggler

Thanks for the advice, it is much appreciated. Yes, ideally I would like to have around £20k savings still. Mmm...I'll ponder this one further.

Thanks again!