In the current climate, would we get it?

eatit

We need a bigger house!!

Our current mortgage is £147,500.00

I would like to buy a 3 bed (SUTTON, Surrey) and am looking at a max of £300,000.00.

Our house will go on the market for £245,000.00 and we hope to get around £235-240K.

I have estimated that from our equity I will need 15k to clear all debt and 15k for moving costs, stamp duty etc.

My wife is un-employed (well housewife so a demanding job).

I am 30 and on £53k + bonuses

Would we get it?

Also talking to a few collegues I am toying with the idea of holding our current 147k mortgage and putting the further mortgage amount on interest only???

Thanks for you time and thoughts

Tom

eatit

Can anybody in the know give me an idea/opinion on this?

Thanks :beer:

PasturesNew

Just doing the sums here as it wasn't itemised:

£235,000 - sell house
£147,500 - redeem mortgage
=======
£87,500
£30,000 - fees and debt
=======
£57,500

£300,000 - new house cost
£57,500 - deposit
=======
£242,500 - mortgage required

£242,500/53,000 = 4.57x salary
22% deposit

I am nothing to do with the mortgage industry whatsoever, but that looks doable to me.

UK007BullDog

There might be a problem with the income multiple. I suspect OP has kids as well. I think he will be looking at 3x or maybe 3.5 x income multiple. Its all about affordability and wife and kids will chop off an amount his income.

If bonus is guaranteed then some lenders will take all or half into account.

If taking loan interst only its more expensive over the long run and loan is never paid off.

eatit

Thanks both for the replies.

I was told by a friend a few months back that 'affordability' was key but had a feeling that things may have changed since.

Yes, you guess right we do have 2 kids (5yr and an 8month).

Ill keep looking for that dream home and if we find it put in an offer and keep my fingers crossed

Thanks again!

Tom

UK007BullDog

Going by income multiple you are looking at £160K - £185K max.

So the house price you are looking for is around £217K to £240K.

Good luck house hunting.....