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Mortgage advice please

(8 Posts)
Twiddlebum Wed 16-Oct-13 09:51:16

I am currently trying to put together our 5 year plan.....

We bought our small 2 bed cottage in 2008 (before the crash) for £175,000 (with a 5% deposit) and intended to move to a family sized home a few years later.

I am now about to have our first child and this house is fine size wise for now. Because of my age we hope to have another child in 2 years. For a few years we could cope with living here but as they grow and especially if I have different sex siblings then we need to move.

Our mortgage was agreed to use when we were both working full time with no children. My question is.... How are mortgage amounts calculated for second time buyers??

Our cottage is worth £170,000 (we owe £149,000) and I have found an ideal house that we could move to for £185,000 so not a great deal more. We can comfortably pay our current mortgage so know that we would cope with this small increase (even when rates go up)

Our 5 year plan includes saving an additional £30,000 so we will have £50,000 to put forward as a deposit on a £185,000 house. The thing that has change though will be our income as I will be going down to 3 days a week.
My DH earns £35,000 and I will be on £15,000

Is this doable or are mortgage companies going to laugh in our face?? (Going by the 3x main earner principle we have no chance but was hoping that there was some way of just transferring a mortgage to a new property or something??

TIA

debtcamel Wed 16-Oct-13 09:55:40

Some mortgages are transferable - look at your documentation or ask your lender if yours is.

RedHelenB Wed 16-Oct-13 11:52:43

Sounds doable!

fizzoclock Wed 16-Oct-13 15:32:24

I would think you could easily borrow enough. If you check out the mortgage calculators on Halifax/Nationwide/any other bank, they give you a rough indication. You need to enter loans and childcare costs on the more accurate ones. I am finding they will lend normally 4x joint income and then minus the effect of any childcare/loan repayments.

That would give you an absolute maximum loan of £200,000. Given you would want to borrow only £135,000 and have a good LTV I imagine it would be very straight forward.

cheryl19843 Wed 16-Oct-13 22:16:04

My hubby and I earn slightly less than your joint income and got a mortgage for £207k no problem what so ever (second time buyers, house we sold was only 138k as well)

Twiddlebum Thu 17-Oct-13 06:45:07

That's fantastic news guys thank you. We went for a drive to see the 'ideal' house we found (like I said its only a 5 year plan) but the house is in a suburban estate (that's fine) but the houses were really cramped together. Further investigation and the houses there that we like (and location) are more like £230k-£250 so quite a bit higher but seems like it is doable if we keep focused in the prize and save like mad. smile

Twiddlebum Thu 17-Oct-13 07:52:32

I've just had a quick look on the nationwide website (that's who we are with) and they allow you to transfer your mortgage (with additional borrowing) to another house. Just done the sums and it means that we could have our dream house in 5 years!! Whoop whoop!! grin

debtcamel Thu 17-Oct-13 08:45:02

excellent news!

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