Relocating and getting a mortgage?

mummy_dumpling

Not sure where to post this - hope its in the right spot.

Hubby is waiting to hear back on medicals and references on a new job which would mean us relocating. I'm happy cos its going to be nearer my family and he can move up there first and stay with them during the week, while we sell our house and find a new one.

Q1 - How soon after starting this job would we be able to apply for a mortgage?

Q2 - We're trying to work out what we can afford to buy. Our current house is worth about £80-90k with a £40k mortgage. His new job will be paying at least £21k on starting (a big improvement on his current salary of £14k - wage not been finalised yet). Do you think we'd get a £150k mortgage?

thanks:D

ETA - on top of DH wage we will also get tax credits for 5 kids - whatever that will be with his new wage I don't know

AndrewSmith

Q1 - How soon after starting this job would we be able to apply for a mortgage?

Depends on the contract he is being offered, probationary period etc. It is possible, if the contract wording is right, to obtain agreement to lend prior to his starting the new job. The lender would be unlikely to complete on the mortgage however until he was actually working in his new role.

Q2 - We're trying to work out what we can afford to buy. Our current house is worth about £80-90k with a £40k mortgage. His new job will be paying at least £21k on starting (a big improvement on his current salary of £14k - wage not been finalised yet). Do you think we'd get a £150k mortgage?

Without knowing all the case details it's impossible to say however based on the raw information to hand I would say it is highly unlikely that youwould secure a mortgage for £150,000. 25 year repayment mortgage at an assumed average rate of 5.99% for example would be costing you approx £965 per month. On a salary of £21,000 one would have to question the affordability of it.

I would suggest, again based on the information to hand, that a borrowing of up to £100,000 is far more achievable and realistic. Using the same assumptions as above the monthly payments would be in the region of £643, more sensible on £21,000 salary I think.

Hope this helps

Andrew

mummy_dumpling

thank you for your advice

sorry, I didn't mean a £150k mortgage, I meant £150k property - which would mean about £100k mortgage so you already answered that for me

my husband thought we would have to wait till he'd been in his job 6m before we could apply for a mortgage - obviously we don't really want to wait that long if possible

thanks