Please help, what are our chances ?

SR1

We've had an offer accepted on a house we really love and although I have an agreement in principle I am now really panicking we will be turned down, if I put down my figures could I have some opinions ?
House price 272000
Equity in current house 85000
Mortgage required 187000(currently 65000 over 17 years )
Income one 23600
Income two 23600
Child benefit 1700
Age 34 and 37 ,2 kids
Debt 1400 each on interest free card, hope to be cleared before end of year
One payment left of a loan(333£out of £7500 over two years)
Apart from paying off cards the only expenses I have apart from general cost of living is childcare at £40 and my husbands travel costs of about £40 a week
This will be our third house move
Also in the next 7-10'years I will inherit a substantial amount which would pay off this mortgage I don't know how relavent this is,
Oh I'm with Woolwich/ Barclays

Jon_B_2

4x your salary. Doesn't seem unachievable.

dimbo61

Clear the loan and pay off the credit card debts even if on 0%
Better to look debt free except the mortgage.
Can you overpay your existing mortgage?
Now £187,000 at 4% over 25 years would cost £987 a month.
So can you overpay every month to make your current mortgage payment say £987 a month!
This proves to Woolwich that you can AFFORD a bigger mortgage and have a good deposit.
It will cost about £10,000 in stamp duty and other costs to move home

Thrugelmir

SR1 wrote: »

Also in the next 7-10'years I will inherit a substantial amount which would pay off this mortgage I don't know how relavent this is,

Totally irrelevant.

No one knows what the future may hold.

roje

Don't forget the other costs involved. Stamp duty of £3.6k, estate agents and solicitors fees will probably come to at least £4k too. Have you made allowance for this?

SR1

Thrugelmir wrote: »

Totally irrelevant.

No one knows what the future may hold.

It's just that I saw a link to a Woolwich application form and one question was something about expecting money to pay off mortgage before the term

SR1

roje wrote: »

Don't forget the other costs involved. Stamp duty of £3.6k, estate agents and solicitors fees will probably come to at least £4k too. Have you made allowance for this?

Yes as this is all so out of the blue my parents have agreed to help with this , if I had known this would happen I would have put money by

SR1

dimbo61 wrote: »

Clear the loan and pay off the credit card debts even if on 0%
Better to look debt free except the mortgage.
Can you overpay your existing mortgage?
Now £187,000 at 4% over 25 years would cost £987 a month.
So can you overpay every month to make your current mortgage payment say £987 a month!
This proves to Woolwich that you can AFFORD a bigger mortgage and have a good deposit.
It will cost about £10,000 in stamp duty and other costs to move home

I don't think it will cost £10000

SR1

Sorry I did not mention my house is a private sale no agent

SR1

How exactly do they calculate affordability,once you have paid for commitments and other day to day expenses, what do they think you should have left ?

TravelBugHappy

Look on the lenders websites & use their affordability calculators - that'll give you a much better idea