Advice

thenextstep

Hello everyone,

I'm after a bit of advice, due to a change of circumstances I may need to move house. Can you confirm if the below is feasible (i know there a lot of variables etc, but some rough guidance would be most appreciated)

Salary 35k
Current House Value 130-135k
New House Value 190k
Deposit if current house is sold at 130k will be 30k
CC Debt £700
No other debt/commitments

All advice and comments are welcome.

Best Regards

Rob

ACG

It should be possible. You may need to up the deposit slightly (£2,500) as some lenders have a cap of 4.5x income but there will probably be lenders who will lend you the full amount you are after.

AnotherJoe

So you want to borrow £190k - £30k = £160k ona salary of £35k which isa multiple of 4.6 which is just about the limit according to posts here. There's also various costs and you don't indicate you have any savings to cover those ? So it would be tight.
See a broker.

thenextstep

Thanks guys, I have around 20k in other savings so i will use this to cover stamp duty/solicitor fees.

Essentially what I am aiming to do is to have 30k once the current house is sold, this would include paying the estate agent. So i'm hoping to sell for around 132ish.

AnotherJoe

thenextstep wrote: »

Thanks guys, I have around 20k in other savings so i will use this to cover stamp duty/solicitor fees.

Essentially what I am aiming to do is to have 30k once the current house is sold, this would include paying the estate agent. So i'm hoping to sell for around 132ish.

In that case I'd sugegst that using £40k as a deposit would be better, would get you under the 4.5x limit comfortable. Also might get you a better mortgage rate depending how much of that £20k you used.
See a broker.

thenextstep

Thanks guys. I am meeting with a broker this week. I think I can get the property i want for 185 so this should help with affordability?