New Baby..need bigger house problems

Fleeting_Glimpse

Hi

We took out a mortgage with Bristol & West 7 Years ago (endowment) for 34K, the value of our property.

We then converted to a fixed rate @ 4.75 with B&W in 2003 until 2008.
Our property is now worth around 95K.

The situation we are now in is that we are expecting our second child and really could do with a bigger home with 3 bedrooms.

7 Years my Wife was working full time and is now only working 2 days a week and brings home approx 5K a year. I am still self employed and last years accounts showed 15K nett.

The properties we have been looking at are around the 120 to 130K mark.

Would Bristol & West lend us the amount we need?

Any advise before we call them would be great.

Thanks

Leigh

payless

so an move up the property market of say £30K on property means £64K plus any fees / costs you want added

No Doubt B& W have a penalty if you leave

Their normal 3.25X + 1 is not going to get you there, they do offer upto 4 x +1 - good credit histort & minimum income criteria £20K for major earner, so unless you can cover costs yourself AND they are willing to offer this as existing borrowers as you fail criteria.

Some may suggest self cert - I have issues with the way self cert is promoted , and without knowing more about how your accounts/ profits are calculcated its hard to see if you qualify ( NOTE OVERSTATING INCOME IS FRAUD) Could you really afford to approx double your mortgage!

I have been told if original case was standard status you can't port ( and save penalty) on a new self cert case anyway, so would even up with fee( if applicable) if went with a new lender

Fleeting_Glimpse

Thanks for the reply

The redemption charges are 6%

We can afford to pay an extra £200 a month on the mortgage

payless

So if I am right that they will only port on standard status , that will restrict the borrowing to the multiplers mentioned above - would need to speak to the to confirm if will go to the higher amounts OR you leave this product/ lender will mean paying the penalty (and poss higher rates)

Depending on new rate obtained £200pm is maybe towards lower range of your property prices

Pinkleylandii

Just a thought can you not extend the house and put another bedroom on and borrow the necessary money. If you are in a good area and like it,it is worth a consideration. To put a bedroom on over a garage work on 25-30k a builder will give you a better idea of cost. You would then have to pay for planning and building regulations your council would advise you on cost, and additional borrowing on your mortgage may only be an administration fee of £250?? Elaine

dwsjarcmcd

Not sure I agree that you need to go self cert. You say that your income is £15k net and preumibly you have been trading a while and been paying your mortgage. With your wife's income, I would be astonished if B & W didn't agree to lend you £64k quite easily. You can pot your original mortgage product and take a new product for the difference