Is moving home in the next 2 years realistic?

Spies

I current have a house that I have mortgaged it was bought for £150k in 2013, I have £59k left on the mortgage, not sure of the currently value but Zoopla gives an estimated range of £211 - £234k

My partner works 21 hours a week but does overtime when its available, typically, she is able to top up to 35 hours most weeks, I work 37.5 hours, between us we bring in around £30k including her overtime.

We are currently trying to save around £1000 a month for the next two years, I will be paying off 10% of the mortgage at the end of this year as my deal runs out.

There is a new build estate in the early states of planning permission, looking at the plots on other sites in the same town, it appears we would need around £412k

Is this a realistic goal or am I simply dreaming, is it still the case that mortgage lenders do not factor in overtime to mortgage proposals?

Thanks

EssexHebridean

Are you asking about affordability? If so, imo there’s not enough info here to inform more than a wild guess. Have you looked at the MSE main site for the various calculators etc? ( and remembered to factor in the likelihood of increasing rates?) 

dimbo61

If you can overpay by £1000 a month and not incur Early repayment charges then you might be able to reduce your debts by £24,000 over the next 2 years.
So if your home is then worth £250,000 and you can borrow £150/170K you maybe able to afford that new home 
So keep saving

Annisele

That's a tricky question - you're asking about house prices and mortgage criteria in a couple of year's time. Given the changes we've had in the last few months, I'm not confident about predicting what's going to happen tomorrow let alone what might happen after we've had another election.

Zoopla valuations aren't particularly reliable, but taking the higher figure your current equity is around £175k - say £170k after you've paid selling costs. Assuming neither of the properties change value in the next couple of years, and assuming no major tax changes, then on a £412k house, you'd be looking at at least £10k of stamp duty and costs. So you'd need to come up with somewhere in the region of £252k in either cash or mortgage to bridge the gap.

You're hoping to be able to save £24k or so over the two year period (which would be amazingly good going on salaries of £30k). So take that down to £228k.

I think you'd struggle to raise more than four times salary as a mortgage. But even six times (which I think you're very unlikely to get) would only take you to £180k. So, if everything stays the same as it is now, you'd need existing savings of at least £50k - and probably more like £110k.

But everything isn't going to stay the same as it is now. House prices might rise (or fall), and the price of your current house won't necessarily rise (or fall) in proportion with the new house. You might get pay rises, or lose your jobs. The house you want might not get built. Lending criteria and interest rates will change, maybe in your favour and maybe not.

I don't think it's a completely impossible goal, but I do think reaching it within two years sounds ambitious.