Sorry, another "what are are chances?"

ndi149

This is one for the brokers, sorry to ask this again, but trying to find out if there is realistically any hope on this, as we are looking to move in a year's time.

I'm currently on maternity leave due to go back in October full time.

We are looking to purchase a 3/4 bed house, unfortunately we live in a fairly expensive area, this is even with going five or six stops further down the rail line, basically we need to be looking at a purchase price of around the £500k mark.

So our dets are
Mine
Sal, £48,600
Car finance 175pm
CC should £1,500 within a year
Current home solely in my name with about 85k equity

His
Sal £38,000
CC, again should be £1,500 within a year
Student loan

Our childcare will be £800pm, taking into account Grandparents and Tax free childcare scheme.

What is the likelihood of a broker being able to get us a mortgage for the £415k we need, based on those figure? We have a feeling this may come down to a change of job with more money for OH, but want to see if there is a chance, with the circumstances as they are.

ACG

I would say pretty slim.
I think you would be looking somewhere around £350-390k.

I am not saying it can not be done, but I think you are looking for a little too much.

ndi149

Ahh thanks :-(

Are the childcare and car the biggest issues? Admittedly, we can't do a huge amount about those.

Would clearing the CCs give us that much more to play with?

ACG

Without the expenditure, there are not many lenders who would lend what you need. Most top out at 4.5x income. So to go beyond that with the expenditure is really stretching things.

tom2205

Have a play around with the HSBC intermediary calculator. They are generous even with fairly high commitments so they may be looking around the £400-410k mortgage amount based on their calculators.

ndi149

Thanks Tom, will look into that!

I guess I thought we had decent salaries and despite the childcare cost for our little boy, thought our costs were actually pretty low. Lol

tom2205

They are quite low yes. Based on your finances they most likely would not be bothered by the credit cards / car finance, your childcare is the main thing that will affect it. I take it that is the figure for when you return to work full time?

I've had a look at they are coming back with £400k, potentially £411k.

ndi149

Yes, that's the figure with me back full time.

That's even with the Grandparents help. That cost may come down a little if we focus on properties further out, which I think we will have to do.

This is one of the reasons we are taking a look at this now, rather than in a year's when we want to move, hoping it would give us enough time to make any financial changes, but the childcare we are a little stuck on.