What can we realistically borrow

Newheight13

Hello,

We have a residential mortgage for 170k and property is worth 215k 

We also have a BTL mortgage for 127k and the property is worth 225k. 

We have a joint income of 96k (30k and 66k) 

We also have debt of 47k

Would it be possible to sell the residential and purchase a property for 425k? 

5% deposit 21k
Stamp duty - 12k
fees etc 5k 
10k paid off debt

The BTL has only been running for a year so haven’t included the income but it generates £1300 a month, with the interest  being £550 a month. 

Outgoings for childcare/ sports are around £400 a month. 

Thanks!

ACG

Its a little difficult to say for sure, your ages, the breakdown of the debt and repayments play a part. 
However I think £425k is possibly very top end. 

Try an affordability calculator or speak to a broker, they will be able to go through everything in more detail and confirm what is possible. 

Mark_d

I think it's unlikely.  The equity in your current property could just about pay off your debt.  You want to borrow 4 times your combined earnings.  BTL earnings possibly won't be counted as you've only got a short track record with BTL.  Childcare will alslo affect your affordability

Hoenir

Newheight13 said:

We also have debt of 47k

What's the nature of the debt? 

Newheight13

34k loan/credit cards 
calculators say we can borrow 500k but I don’t believe this to be true 

gwynlas

Perhaps you ahould consider trying to drastically reduce above  debt over the next 12 months as it is the minimum payments that affect your affordability rather than the debt itself.