Mortgage help

mose_2

Hi, we live in a one bed flat and now need to move to a house, the flat is worth £135k and we want to buy for £200k ish. the mortgage we have has run out of its fixed rate and is £45k. We want to use about £30k of the equity so my wife can give up work for a few years to look after the little one. So we need to borrow about £150/160k our joint income is £40k a year would we get this do you think? how does releasing some of the equity work? Obviously we need to get a mortgage sorted before my wife hands her notice in. will the mortgage lender ask why we need the money?

Lots of questions i know.

Thanks

Mose.

_Andy_

Hi Mose

What is your income going to be after your wife stops work?

mose_2

Hi, income will be only £15000 this is why we need the money to live off for 2/3 years, obviously we can't tell the bank that my wife will be giving up work right or we will def not get the money we need?

poppy10_2

How do you expect to support a £150,000 mortgage on a £15,00 income?

_Andy_

poppy10 wrote: »

How do you expect to support a £150,000 mortgage on a £15,00 income?

Poppy - I think the OPs intention is to use mortgage funds effectively as income. Not something the lender would be too happy about!

mose_2

Yes thats correct we will be using some of the profit from the flat to use as income for say 3 years.