Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • breakingbad
    • By breakingbad 9th Jul 18, 9:44 AM
    • 100Posts
    • 63Thanks
    breakingbad
    Mortgage likelyhood?
    • #1
    • 9th Jul 18, 9:44 AM
    Mortgage likelyhood? 9th Jul 18 at 9:44 AM
    Morning all,

    My wife and I weren't planning to move house, but recently learned that our local authority has changed the boundaries of our local school catchment areas, leaving us outside the catchment of the desired school (and one of the primary reasons we bought the house we did back in 2014).

    So, it seems we are moving.

    Our house is on the market for 240k, and the estate agent seems confident it will go relatively quickly, as in his words "it's immaculate". We have found a property we like, which is much closer to the school and have had an offer of 260k accepted.

    We bought our current property with a HTB loan back in 2014, and so will owe the government 48k (assuming we sell at 240k). This leaves us with approx 40k equity as a deposit for the next house, which is approx 15%.

    My salary is 41k, but my worry is that my wife is currently on Maternity leave (2nd child was born in April), meaning her usual 37k salary is approx 14k. I have consulted two different mortgage advisors who both said it shouldn't be a problem, but I'm not so convinced.

    Other factors...
    I have approx 9k credit card debt, approx 200/mth
    My Wife pays 230/mth for a car payment.
    Because we haven't been expecting to move, we haven't saved much and there may have been the odd dip into (authorised) overdrafts, mainly for convenience.

    So, any advice appreciate!

    Thanks!
Page 1
    • DCFC79
    • By DCFC79 9th Jul 18, 9:55 AM
    • 32,101 Posts
    • 20,196 Thanks
    DCFC79
    • #2
    • 9th Jul 18, 9:55 AM
    • #2
    • 9th Jul 18, 9:55 AM
    Haven't saved much so where is your money going you dont spend ?

    Should save something, what if you need to replace a white good ?
    • madvicker
    • By madvicker 9th Jul 18, 10:13 AM
    • 47 Posts
    • 28 Thanks
    madvicker
    • #3
    • 9th Jul 18, 10:13 AM
    • #3
    • 9th Jul 18, 10:13 AM
    I don't think a lender will be worried about paid maternity leave. Obviously having 2 children affects affordability, but with your current credit commitments it shouldn't be an issue to borrow what you need. I assume once your wife's maternity leave is over she will be going back to work? In which case you'd be using her full salary in the mortgage application - but I think you'd have to support the application further with documentation showing her agreed return to work date with her employer.
    • jennhg88
    • By jennhg88 9th Jul 18, 10:20 AM
    • 43 Posts
    • 14 Thanks
    jennhg88
    • #4
    • 9th Jul 18, 10:20 AM
    • #4
    • 9th Jul 18, 10:20 AM
    Haven't saved much so where is your money going you dont spend ?

    Should save something, what if you need to replace a white good ?
    Originally posted by DCFC79
    That's a bit harsh and unecessary.
    Kids are expensive!

    As for the original q, lenders should be fine about maternity leave with a planned return to work date. Might need to consider childcare costs in affordability though? Some lenders are better than others with this.
    • kingstreet
    • By kingstreet 9th Jul 18, 10:24 AM
    • 33,666 Posts
    • 18,255 Thanks
    kingstreet
    • #5
    • 9th Jul 18, 10:24 AM
    • #5
    • 9th Jul 18, 10:24 AM
    Lenders tend to treat card debt as a 3% or 5% min payment, so you are going to be charged 300 or 450 a month regardless of what you actually pay.

    Stick your details in lender online affordability calculators and see what the results are like.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • ctlfc
    • By ctlfc 9th Jul 18, 12:21 PM
    • 16 Posts
    • 1 Thanks
    ctlfc
    • #6
    • 9th Jul 18, 12:21 PM
    Haha
    • #6
    • 9th Jul 18, 12:21 PM
    Haven't saved much so where is your money going you dont spend ?

    Should save something, what if you need to replace a white good ?
    Originally posted by DCFC79
    Why is this relevant? Are you just bored and fancied being self-righteous?
    • DCFC79
    • By DCFC79 9th Jul 18, 1:34 PM
    • 32,101 Posts
    • 20,196 Thanks
    DCFC79
    • #7
    • 9th Jul 18, 1:34 PM
    • #7
    • 9th Jul 18, 1:34 PM
    Why is this relevant? Are you just bored and fancied being self-righteous?
    Originally posted by ctlfc

    Not all bored but thanks for your concern, how nice to show some concern.

    Well that wasn't the intention to come across as self righteous.


    Maybe the OP should look at reducing spending so can save even more meaning wont need to dip into overdrafts less often or not at all.


    If you feel necessary then report my comment.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

634Posts Today

7,278Users online

Martin's Twitter