Mortgage likelyhood?

breakingbad

Morning all,

My wife and I weren't planning to move house, but recently learned that our local authority has changed the boundaries of our local school catchment areas, leaving us outside the catchment of the desired school (and one of the primary reasons we bought the house we did back in 2014).

So, it seems we are moving. :eek:

Our house is on the market for £240k, and the estate agent seems confident it will go relatively quickly, as in his words "it's immaculate". We have found a property we like, which is much closer to the school and have had an offer of £260k accepted.

We bought our current property with a HTB loan back in 2014, and so will owe the government £48k (assuming we sell at £240k). This leaves us with approx £40k equity as a deposit for the next house, which is approx 15%.

My salary is £41k, but my worry is that my wife is currently on Maternity leave (2nd child was born in April), meaning her usual £37k salary is approx £14k. I have consulted two different mortgage advisors who both said it shouldn't be a problem, but I'm not so convinced.

Other factors...
I have approx £9k credit card debt, approx £200/mth
My Wife pays £230/mth for a car payment.
Because we haven't been expecting to move, we haven't saved much and there may have been the odd dip into (authorised) overdrafts, mainly for convenience.

So, any advice appreciate!

Thanks!

DCFC79

Haven't saved much so where is your money going you dont spend ?

Should save something, what if you need to replace a white good ?

madvicker

I don't think a lender will be worried about paid maternity leave. Obviously having 2 children affects affordability, but with your current credit commitments it shouldn't be an issue to borrow what you need. I assume once your wife's maternity leave is over she will be going back to work? In which case you'd be using her full salary in the mortgage application - but I think you'd have to support the application further with documentation showing her agreed return to work date with her employer.

jennhg88

DCFC79 wrote: »

Haven't saved much so where is your money going you dont spend ?

Should save something, what if you need to replace a white good ?

That's a bit harsh and unecessary.
Kids are expensive!

As for the original q, lenders should be fine about maternity leave with a planned return to work date. Might need to consider childcare costs in affordability though? Some lenders are better than others with this.

kingstreet

Lenders tend to treat card debt as a 3% or 5% min payment, so you are going to be charged £300 or £450 a month regardless of what you actually pay.

Stick your details in lender online affordability calculators and see what the results are like.

ctlfc

DCFC79 wrote: »

Haven't saved much so where is your money going you dont spend ?

Should save something, what if you need to replace a white good ?

Why is this relevant? Are you just bored and fancied being self-righteous?

DCFC79

ctlfc wrote: »

Why is this relevant? Are you just bored and fancied being self-righteous?

Not all bored but thanks for your concern, how nice to show some concern.

Well that wasn't the intention to come across as self righteous.


Maybe the OP should look at reducing spending so can save even more meaning wont need to dip into overdrafts less often or not at all.


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