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Original poster

Please help I feel thick- mortgage

16 replies

theyhavenothingbuttheaudacity · 29/04/2022 17:48

So using a mortgage calculator I can borrow 275k. I have about 100k equity in my house. Does that mean I could buy a house for 375k?

OP posts:
Aposterhasnoname · 29/04/2022 17:49

Basically, yes. But keep in mind moving costs, stamp duty etc

superram · 29/04/2022 17:49

You should put the deposit into the calculator as the amount of deposit. No one would lend you £275k without some deposit.

Original poster
theyhavenothingbuttheaudacity · 29/04/2022 20:20

superram · 29/04/2022 17:49

You should put the deposit into the calculator as the amount of deposit. No one would lend you £275k without some deposit.

It didn't have an option for that

OP posts:

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General money
dubyalass · 29/04/2022 20:37

But OP does have a deposit - £100k equity in her current house. So a loan to value (LTV) of just under 75%. Your LTV affects the mortgage rate - a lower LTV means less risk for the lender (so you'll get a cheaper % rate), higher LTV means more risk and so more expensive mortgage.

User65412 · 29/04/2022 20:41

Yes but you will need cash for fees etc so take that into account.

5zeds · 29/04/2022 20:45

Most calculators will be heavily dependent on the deposit

PandemelonFelon · 29/04/2022 20:56

Is your deposit the equity in your home, or is it separate?

BarbaraofSeville · 29/04/2022 21:10

superram · 29/04/2022 17:49

You should put the deposit into the calculator as the amount of deposit. No one would lend you £275k without some deposit.

Most calculators ask if you are moving home and show a different calculator to those who need a cash deposit.

Equity is just as valid as a deposit, the lender just wants to know if they'll get their deposit back if you never pay and trash the house on day one.

pilates · 29/04/2022 21:35

Yes but you need to factor in agents fees and solicitors fees, stamp duty and disbursements.

3luckystars · 29/04/2022 21:37

Use Karl Jeacles mortgage calculator online. Good luck.

Flopisfatteningbingforchristmas · 29/04/2022 21:38

In theory but the mortgage provider and you should consider affordable, if you are going to be paying 2 lots of nursery fees and with all bills increasing and potentially mortgage rates increase can you afford to borrow that much?

Original poster
theyhavenothingbuttheaudacity · 29/04/2022 21:41

Flopisfatteningbingforchristmas · 29/04/2022 21:38

In theory but the mortgage provider and you should consider affordable, if you are going to be paying 2 lots of nursery fees and with all bills increasing and potentially mortgage rates increase can you afford to borrow that much?

Very true

OP posts:
BernadetteRostankowskiWolowitz · 29/04/2022 21:44

Why not go and see a mortgage advisor? Lots are free (they take their commission from the provider). Then you will know exactly.

Shamoo · 29/04/2022 22:17

L&C have a good tool on their website for this, and are free to use if you then need more advice. Would def recommend.

ENoeuf · 29/04/2022 22:21

I am confused. If you could borrow £275k
you have £100k equity
what is the current mortgage? Won’t that be part of the 275?

LoveSpringDaffs · 29/04/2022 22:22

Yes, beware if the 'live' affordability calculation. Nationwide is quite a difference between 'what you can borrow' & their affordability calculation at the moment.

(with no explanation and I don't have any debt or spending they look at. Most weird)

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