Mortgage broker - ask me anything

Lucky2021

Hello, I’m just after a bit of advice. We are considering moving house. Currently mortgage just in hubby’s name but we would like to buy together just not sure on options. 

We earn 35k and 40k long standing jobs. Have 7k loan (his) and me approx 10k cc debt (all 0%) and being regularly paid. Equity in our house (if move) will be approx 120-130k (possibly more).

would we likely get a mortgage with the debts at mo or worth waiting and paying down? 

May seem silly but been in same house for years and obv only updated mortgage a couple of times with simple renewal.

many thanks in advance

K_S

@lucky2021

Lucky2021 said:

Hello, I’m just after a bit of advice. We are considering moving house. Currently mortgage just in hubby’s name but we would like to buy together just not sure on options. 

We earn 35k and 40k long standing jobs. Have 7k loan (his) and me approx 10k cc debt (all 0%) and being regularly paid. Equity in our house (if move) will be approx 120-130k (possibly more).
would we likely get a mortgage with the debts at mo or worth waiting and paying down? 

May seem silly but been in same house for years and obv only updated mortgage a couple of times with simple renewal.
many thanks in advance

@lucky2021 Based on the very limited info in your post, your max limit will probably hinge on how old you are. If you can stretch to the usual max of 40 years, the debt will likely have no impact and with a 130k+ deposit, you may be able to borrow up to 375k (assuming your 35k and 40k income is all basic). If due to age your max term is limited to less than 25-30 years the debt will start to have a larger impact. It all depends on how much you are looking to borrow.

EmKoh

big_saver_5 said:

@EmKoh - haras_n0sirrah isn't on the site any more. I have her details if wanted

Yes please, that would be very helpful. Thank you.

Lucky2021

K_S said:

@lucky2021

Lucky2021 said:

Hello, I’m just after a bit of advice. We are considering moving house. Currently mortgage just in hubby’s name but we would like to buy together just not sure on options. 

We earn 35k and 40k long standing jobs. Have 7k loan (his) and me approx 10k cc debt (all 0%) and being regularly paid. Equity in our house (if move) will be approx 120-130k (possibly more).
would we likely get a mortgage with the debts at mo or worth waiting and paying down? 

May seem silly but been in same house for years and obv only updated mortgage a couple of times with simple renewal.
many thanks in advance

@lucky2021 Based on the very limited info in your post, your max limit will probably hinge on how old you are. If you can stretch to the usual max of 40 years, the debt will likely have no impact and with a 130k+ deposit, you may be able to borrow up to 375k (assuming your 35k and 40k income is all basic). If due to age your max term is limited to less than 25-30 years the debt will start to have a larger impact. It all depends on how much you are looking to borrow.

Thank you the salaries are our basic. We’d be 25-30 max term and probably wouldn’t want to borrow 375. More like 300k and then add the deposit of 130k or more. 

Think I’ll pay off some more of the debts then look at applying. 

Appreciate your time many thanks! 

binkyboo22

We have a property that we won't be selling. We know we can get an AIP for a second property of around 325k. We will struggle to get together the amount needed for stamp duty within the timescale we need to purchase a second property by. If we buy a property at around 250k is there a chance to increase what we borrow to cover the stamp duty? I have read about it but wasn't sure at the moment how things stand. 

K_S

binkyboo22 said:

We have a property that we won't be selling. We know we can get an AIP for a second property of around 325k. We will struggle to get together the amount needed for stamp duty within the timescale we need to purchase a second property by. If we buy a property at around 250k is there a chance to increase what we borrow to cover the stamp duty? I have read about it but wasn't sure at the moment how things stand. 

@binkyboo22 If you're buying a property worth 250k with another residential property in the background, in the current market, generally speaking the maximum that you may be able to borrow is around 85% of that, so 212k.

So anything you have in excess of the minimum 15% deposit you could theoretically use for the stamp duty. Unfortunately, the bank isn't going to lend you any money over and above that specifically for the SDLT bill.

If the intention is to let the existing property, then you could potentially release some cash through a let2buy and use it towards the new house purchase.

binkyboo22

K_S said:

binkyboo22 said:

We have a property that we won't be selling. We know we can get an AIP for a second property of around 325k. We will struggle to get together the amount needed for stamp duty within the timescale we need to purchase a second property by. If we buy a property at around 250k is there a chance to increase what we borrow to cover the stamp duty? I have read about it but wasn't sure at the moment how things stand. 

@binkyboo22 If you're buying a property worth 250k with another residential property in the background, in the current market, generally speaking the maximum that you may be able to borrow is around 85% of that, so 212k.

So anything you have in excess of the minimum 15% deposit you could theoretically use for the stamp duty. Unfortunately, the bank isn't going to lend you any money over and above that specifically for the SDLT bill.

If the intention is to let the existing property, then you could potentially release some cash through a let2buy and use it towards the new house purchase.

Thanks, we had an AIP in October based on keeping the other property in the background and a 10% deposit so I assume things have got harder since then. 

K_S

@binkyboo22 Mine was a general statement. At high LTV, things definitely haven't gotten any harder since October so perhaps the details of your scenario allow you to borrow at 90% LTV with a second residential mortgage in the background. 

pinkcloud17

Does your first monthly mortgage payment come out on completion day? 

FredeSpencer

Hi There, My wife and I are currently 4 years into a 5 years fixed Interest Only Mortgage meaning. The mortgage was on a 22 year term when we got it so there 18 years left on it - 17 when we finish next year. The full loan is £500k and so far we have only been able to pay interest off. The house we are in is valued at 1.1 mil meaning we have around 55% equity. I am 48 and my wife is 49. At the time of the mortgage i was making more money than i am now.
 I am slightly worried we will not be able to get a competitive mortgage next year. Any advice?