Is £130k a hideously enormous mortgage?

[LeBabaDeAllie]

bit of a hike for us and i'm a bit wary???

our first home has a mortgage of 147000 so i would have been glad of 130000

depends on your income. BTW ours is a lot more than that!

It depends on your income and regular outgoings. We have a £200k mortgage and a decent income but with nursery fees plus a teenager and travelling expenses for work, we regularly go overdrawn.

We have one similar, pay £700 per month.
Down here it is tiny!
(Our house is not down here...)

I guess it depends on your income/incomes, monthly expenditure/cost of living and the value of the property

income not vast, but do they just lend it to you anyway???

No, they will ask for details of your income and regular outgoings. Depends on the lender as to what multiplier they'll use. Most are max 3 times joint income. Some will do 4 times

that normally depends on the value of the property

Hi jmg

It sounds tiny to me (god, it would get you a 1 bed/studio here) but it all depends on your income/what you'd do if prices go up/what equity you have, if any/savings etc etc.

hi, how are you, you seemed a tad mythed the other day!

i'm telling you all my biz now, but current property worth £200k and mortgage of £80k, want to buy in laws for £250k, but they won't let us as they think the mortgage is too much. They paid £19,000 for it, and have no mortgage, lots of savings and a nice tidy profit...I need ammo to attack!!!

Some lenders are now, very sensibly imo, lending on basis of affordability rather than an income multiplier.

can you afford to pay it back ? Some lenders are lending up to 5*salary now

current payments are only £456 so think we are looking at another £250pm if over 25ys. I usually re-mortgage when offer runs out, anyone have a 30 yr term?

I'm fine jmg - apart from tonsolitis and the wicked Psycho ex wife (oh and the in-laws)

Apologies for thread hi-jack

The LTV is in your favour and at 5% you would have to pay £541.66 per month on an interest only loan.

Do you think you could afford that?

we are debt free and minimal outgoings... quite boring really

If you have a family income of £20k, then yes £130k mortgage is a lot. If your family income is £100k, then no, it is ok. It depends on your affordability.

Why ever won't they let you?

If you have house worth £200k and mortgage of £80k then you have equity of £120k, yes?
Then you want to buy for £250k, so you want to borrow, what? £130k? On a house worth £250k? Who tf won't allow it? It's a no brainer imo, it's secured against 2 properties, you're putting a lot in, what's the prob?

aren't you clever jmg, please hi-jack away :) LTV loan to value????
We could get rid of one of the cars if we move back to town so, hell yes we could afford it!!!! where did you work that out??

Sorry, they're mad imo, you want to go to another lender who will bite your arm off!

They will lend you £130k secured against £450k of property, what's the problem?

yes the loan to value is just over 50% most lenders would be happy with thank, cause its classed as low risk

WWW, they are so old-fashioned and play it safe. They told us not to buy the house we are in now, so we ignored them and have a nice fat equity! They never borrow money, come to mention it, they rarely leave town don't get me wrong, I love them to bits, but they don't get it

we'd sell this one and buy theirs...