Could a broker get me a mortgage?

Sheep

Hello everyone,

So... I am looking at getting a bigger mortgage but it seems my debt levels are a stumbling block. I am looking to move into a bigger house but im not sure I could get a mortgage. My income and debt are below;

Salary: Me £31k Wife £17200

My debts;
First Direct PL £17000 paying £200pm
Car hire purchase £11500 paying £202
No credit cards

My wife;
Nationwide BS PL £9800 paying £200pm
£6500 on credit cards that will be paid off with the house sale

I am hoping to borrow abour £120,000 mark.

Selling my home for £75k owing £52k giving me 10% deposit and enough to clear wifes credit cards.

Is this doable?

Thanks in advance 😊

Sheep

Sorry, also forgot to mention I earn at least 3k per year in bonus and my wife received £1900 in child benefit.

Foxy-Stoat_3

Can you afford a bigger mortgage?

Your joint debt/joint salary ratio is nearly 100%.

Best speak to a broker with all of your credit reports and they will be able to advise.

user1168934

I am no expert but I seriously doubt any bank will offer you a mortgage for the simple reason that even after you sell your current house your other debts are twice what you will have left, effectively meaning you have no deposit and are still in substantial debt. I don't believe you will fulfil affordability criteria.

kingstreet

Childcare cost?

Ages?

Term?

Find a broker, as suggsted. This can't be done accurately online.

Sheep

No childcare costs. I have 3 children who all go to school and our shift patterns mean one of us are always home outside school hours.

kingstreet

I've just run affordability on one high street lender's affordability calculator as follows;-

Two adults, three dependent children

25 year term

App 1 - £31,000 App 2 - £17,200

Loans £402 & £200 monthly

Borrowing output £164,325.

Child benefit and bonuses ignored.

Sheep

Thank you Kingstreet. We have never missed a single payment with anyone so do you think its worth going to a broker and asking the question?

kingstreet

Yes. If I can do one affordability calculation and come back with £40k more than you want, it should be straightforward getting the £120k you need.

Sheep

Thank you!! Do you have any lenders in mind that I should use or would you always use a broker? I really do appreciate the advice

kingstreet

Yes. As a broker I always suggest people go direct to lenders where they wait weeks, get lousy service and whatever flavour of the month product the staff have been told to shift this week.

Meanwhile, back on planet broker you should be able to discuss your requirements, establish the lender and product which are right for you and have a mortgage application underwritten and a formal mortgage offer in your hand before you even have an appointment to see a branch-based lender employee.