How much can we borrow?

ed67812

I'm booked in to see a broker the week after next and we are in the process of putting our house on the market.


House currently being valued at £185-190k by local estate agents.
Our o/s mortgage is under £111k. I hope we can get £175k+ after EA and selling costs.
Current mortgage about £760 (re-mortgaged to a 14yr rather than 35yr this time).


Joint basic income of £62k. Both due incremental rises in October, which will add about £5k. (Guaranteed and could get confirmation from employer).
I do irregular but substantial overtime, average of at least £300 month over previous years (and so far this year).


Both pay into public sector pensions at 13.5% of basic income(not overtime etc).


2 kids (0 and 2) with childcare costs under £240/m. (Helpful family / we do opposite shifts sometimes).
My PCP car at £212 a month.
Partner 'normal' car loan £274 a month.
No other debts, credit card(s) used for day to day cleared every month.


Is there any such thing as a ballpark figure for what we could borrow or is there a massive range over lenders? Will a decent broker (which I am assured the one we are going to) who is whole of market, know exactly where to go for our circumstances?
I've been looking at 50k deposit mortgages to allow some left over equity (hopefully £15k to fund survey, legals, moving costs etc.). Some affordability calculators are suggesting that we could borrow around £260k, others as low as £140k.

Thrugelmir

Lenders calculators are the best guide. Lenders do differ in in their approach.

amnblog

There is a big range over lenders and some will include, while others ignore your pension payments.

If £225,000 lending will work for your, you are 'in the ball-park'.

ed67812

We'd probably be looking at least a 300k house to make moving worthwhile, so we'd need about 250k lending...if it can't be done, we'll have to stay put and just keep building up equity. It wouldn't be the end of the world!

amnblog

Ask the broker when you discuss with them.

An educated guess is that £250,000 is a step to far, but there may be further detail that helps the situation.

ed67812

Yeah, I'll see what the broker says. I've double checked and by the end of October we will be at household income of £67k, plus the overtime. Like I say, if it is a no-go, we'll just stay put. No point moving to somewhere only a little bigger!

chelseablue

Our household income is almost £60k.


When we went to our broker he placed us with Halifax as a lender who would accept us (partner had a default from 4 years ago)


They said the max we could borrow was £244,000 and that's with paying £760 a month childcare.

ed67812

Thanks. £240k or thereabouts would probably be good for us. I'm hoping we can, as I've double checked and I've actually averaged more like £500 a month in overtime over the last few years (including the last few months). - I've also made sure the other half knows how hard I've worked :-)

looknohands

Our joint household income was £60k, when we applied our mortgage advisor told us the max we would be looking at was £220k value, £200k loan with £20k deposit, but maybe she was being a little cautious, (as we only ended up needing £155k anyway)