Want to move house

magicno1

We would really like to move property at some point and would like to know our potential chances before I go to an advisor.
I had my mortgage 12 years ago interest only on a loan of £130000. House price is now valued at £210000. The mortgage is in my name but would like it joint as I recently got married.
I am a self employed Plumber and have been for 25 years. I am 50 years old and the wife 45.
Most houses in our area are around the £260000mark which would mean borrowing an extra 50K or so.
We overpay the mortgage by 500 each month the total being 763 monthly. Loan remaining is £120000.
I have good credit rating and accounts. My wife is a teaching assistant earning roughly £10.
My net profits are showing around 22K which I know is low but my accountant is good and keeps the tax down so I will need to show higher net profits I guess?

I would really appreciate your thoughts and advice please as my current mortgage advisor I have used since the begging and I don’t tend to shop around! So I’m a little confused as to where to turn!!!!

Thanks so much

Chris

ACG

Most lenders average out the last 2 years accounts, some lenders will work off the latest years figures only but not many on the high street.

With your age, I would probably be looking to work to 4x income, so you are going to need a combined income of around £40k give or take.

You are also probably going to need to go on to a repayment mortgage.

Speak to your/a broker though. There are a few hurdles to jump through I think, none of which sound like deal breakers but it does not look like it will be a case for every lender.

magicno1

Thank you!
Is it also now possible to borrow longer than 25yeats ie if I were to borrow up to say70years old?

ACG

You can theoretically go to 80 or even later.
It is whether an underwriter would believe you can carry on working until that age. 70 is about the most without an underwriter digging deeper, but you need to consider if you expect to still be working at 70.

A plumber is not the easiest of jobs but in saying that, I know 70 year olds who would give me a run for my money (im 33 and go to the gym etc)

magicno1

Thank you.
Regards affordability checks, how much can credit card and loans etc affect it?

ACG

Have a mess around on some affordability calculators.
If you type in <bank name> affordability calculators you can get an idea.

As a VERY simplistic view, whatever the repayments are, multiply that by 48 and deduct that from what you can lend.

So if your income is £25k and you can lend 4x income, that would give you £100,000. If your monthly repayment are £100 a month, multiply that by 48 and it is £4,800. So instead of £100,000 you can now get £95,200.

Is is a very crude calculation. In reality if the debt is fairly low may not have any impact what so ever.