Do we stand a chance? Mortgage related

[merrygoround23]

Hi,

We currently own a property. It's been valuated to sell for 95k which will leave us with 40k equity

A house in our desired area has become available for 120k we know the seller, albeit not well but he knows we are interested and would offer the asking price.

However, I'm a student at present. DH earns 40k a year

Do you think we would have a chance of securing a bigger mortgage?

I graduate next year with a job lined up.

We have two small kids, minimal childcare spends at the minute, which is covered by my university loans.

Any help would be greatly appreciated, I have an appointment with a mortgage advisor tomorrow so I'll find out more then

Definitely!

House is worth £120k, you have £40k equity so you need to borrow £80k. That's x2 DH's salary. Many lenders are lending at least x3.

You have a good "loan to value" so should be able to get a good rate.

Yes that should be fine so long as your DH has a permanent job. Good luck!

Yes definitely, have you done an online mortgage calculator?

Yes, you should go for it.

I can't see why not so long as DH's credit history is OK.

I'm quite jealous of an area where a salary is £40k & a whole house is £120k. We live in an area where Management level jobs tend to be around the £40k mark but house prices are well over £300k just for a very average semi.

You have to remember that the mortgage system is no longer about multiples of income, eg 4 x your salary. It is also about affordability.

What are your outgoings like? If you go into your overdraft each month/you didn’t more than you get them the answer will be no.

How much do you have left over each month?

Agree with above poster.
They trail through bank statements etc.
They questioned me on how much I was paying for parking at hospital (visiting parents frequently for a year)

Mortgage brokers are the best, get an independent one.

Thanks for the replies! I'm feeling hopeful now, I live in an affordable area

Our outgoings our minimal I don't use an overdraft, any childcare comes out of my student loans and both DH and I have disposable income. We run cheap cars etc, minimal credit card debts (£400 left)

I'm hoping this means we stand a chance, if not it's a learning curve and I'll wait until I am in secure employment

Have you done an affordability calculator? Slightly different because Dh was self employed and I was also working, but before our current house, we collectively earned maybe about £80k (so double what you do), and we got an AIP for £450k.

Yes definitely. We got a mortgage for about 3.8x our joint salary, where my job hadn’t started yet (I had a contract), I was coming off maternity leave and had two kids in nursery (with the huge fees that entails). The mortgage was with HSBC at a great rate, not a specialist mortgage or a high rate even. You’ll be totally fine. And absolutely the right thing to do to go to a mortgage advisor.

I got my last mortgage whilst DH was at uni but just did it in my name only. See a broker but that may be an option and seems affordable on just 1 salary. Good luck

Gosh, you're only asking to borrow £25k more. With your stats it'll be a piece of cake!