mortgage on £23k per year?

batg

ALready have 55k mortgage on house bought for 80k. House would likely sell for between 95 and 105k.

We want to sell to downsize a bit and are wondering if we would be able to get mortgage again with only one person now working?

Could we afford to buy at between 60 and 80k and would they give us a mortgage if we put down 20-40k on it?
thanks

ruperts

You're looking at 4.5x your salary as a maximum, so there's no immediate reason to think you couldn't get a mortgage between £60k and £80k based on a £23k salary, but it would depend on your credit check and your own personal levels of expenditure.

batg

5k on credit card that would be paid off with sale proceeds
and £180 pm on car payments
other than that no debt other than normal expenses

Lilla_D

Just to clarify, you're looking to buy for £60k-£80k with deposit of £20k-£40k, i.e. you need £40k mortgage?

Some lenders do take into account the credit card balance, even if you're clearing it with the sale, but many won't, so it's the smaller issue.

The car finance of £180pm that you'll keep is more of an issue in proportion to your income.

Dependent on how old you are, how many dependants you have, what your credit history is like, you could in theory borrow £40k, but a broker will go through the details anyway and advise you about your lender options and max borrowing.

batg

May be a silly Q
but is a broker one of the people the estate agent tried to get you to see?

Or would it be better to go to an Independent Financial Advisor?

Lilla_D

Well, I used to work as a broker in an estate agency and only had access to a panel of lenders, which I disclosed upfront to anyone who came to me for advice. Not sure if it's true for all estate agency brokers though.

Now I'm an independent advisor, so can access most of the lenders and deals. I'm saying "most", as literally no one can access every lender and every deal. Some lenders don't deal with brokers at all, some lenders only deal with some brokers, some lenders have special deals for direct customers only and some lenders offer exclusive deals through certain channels only.

So in truth the terms "independent" or "whole of market" only get you a broker, who has access to the vast majority of lenders and deals. It's up to you, if you're happy with an estate agency based broker or if you seek an independent advisor's help, who may have better knowledge/experience and access to suitable deals due to their status.