Second time buyer - Value query

battman18

Hi all, looking for some general comments as I am mulling over what to do next re my house. I bought two years ago as a first time buyer, it was a full strip out and renovation job on a mid terrace (all new plumbing and wiring, joists + boards, new kitchen, additional bathroom etc).

I am looking at the possibility of moving on to another property once the final touches are done, its taken quite a while as have done it all with my dad at weekends. Bought for 160K with a 20% deposit, but looking at comparative properties sold in the street I would say it should be worth 210K-220K at this point.

Been trying to work out what kind of borrowing capacity that gives me but im not too clued up with mortgages! Hoping ill be able to move up to a semi in the same area, sole salary of 31K, all comments greatly appreciated!

libf

How much is left on your mortgage? Is it fixed?

Contemptuous

Not enough information to go on.

Are you selling the property or keeping it?

How much do you owe on your mortgage?


What sort of purchase price are you looking at for your next property?

battman18

Hi both,

Would be looking at selling this property, current mortgage is a variable ending in two years. Owe circa. 120K on the current mortgage, and I would hazard a guess that the next purchase price would be around the 250K mark. Hope that helps!

battman18

Should also add that mortgage borrowed over 25 years, with 23 left to go.

libf

So if you sell for £220k then you'll have £100k (assuming no early repayment charges) once your mortgage is redemmed.

If you take out £5k for fees and moving costs, then you'd have a £95k deposit towards the £250k on the next place, so you'd need a £155k mortgage. But you're unlikely to get more than £139.5k on your current salary, and that would be with good affordability.

So really you're looking at £234.5k max on the next property unless you have other savings to put in.

battman18

Awesome, thanks for the help mate. Not a million miles away which is nice to know, id definitely hope to have some more saved for when the time comes so good to know im in the general ball park.

Cheers!