Household income £83k / what mortgage repayment is affordable?

alanyau88

andthenjazzonasunday said:

alanyau88 said:

'Currently owe £189k on mortgage with fixed rate of 1.88% for another two years. 

To move house we’d be looking at borrowing at the very least another £100k, but possibly up to £200k.'

Using the mortgage calculator for an extra £200k (£389k) at 4.5% mortgage rate is £2,161 per month. 
At an extra £100k (£289k) at 4.5% mortgage rate is £1,606 per month.
Don't forget to factor in stamp duty, solicitor costs, moving costs, and the penalty charge for breaking your current fixed rate.  For a £350k house that's £5k stamp duty, and the penalty charge for your fix say another £5k.  

Can you afford the extra costs above?  If you can, go for it!  If you can't, then maybe sit down and crunch your numbers to see what you can live with without compromising your living standards for 25 years.

@alanyau88 it wouldn’t be that much. 

I will not be paying an early repayment charge. I have two years left on my current mortgage and can port it to a new property. So the new rate would blended with this to bring it down a little bit for those two years. Then obviously will need to remortgage to prevailing rates in two years. 

Yes, I have cash saved for stamp duty etc. 

it wouldn’t be a £350k house though. Our current property is worth in the region of £370-380. 

The issue is that to take the next step up the ladder it is a significant jump. I’d say £450k at a minimum. 

I see.  A £450k house has a stamp duty charge of £10k.  Be mindful that it's entirely up to the lender whether they agree to port your current mortgage over to a new property.  They may refuse to.

I think once you are happy with the numbers, then the next thing you should do is contact an independent whole of the market mortgage broker.  There are many that read the forums who seems to be very experienced.  They can show you options, approach lenders that are most likely to accept your criteria, and advise which ones will save you the most money should you proceed.  Good Luck!