Will we ever be able to move house?!?

[HeyThatsNotMyName]

I currently own a house. Mortgage is at £50000. It has been valued at £110000.

I'm looking to buy a house for £250000 and put the £60000 we will have from the sale as a deposit. However, when we put the details into a mortgage calculator, our monthly mortgage amount tripled from £300 to £900.

We're looking to move house for schools etc. But, I can't see how we're ever going to afford that!!

Surely this can't be the situation everyone is in?

Well you need a 190k mortgage to buy the new house... and your old mortgage looks to be 60k so it seems about right

50k

It's better to work out how much you can afford to borrow before you decide on the house ;)

I agree with Alexlee ...your mortgage you want is nearly quadruple your current one. Unless you have had significant pay increases will you pass the affordability test? What is the maximum you can afford comfortably per month keeping in mind interest rate rises?

Can you get a better interest rate?

Yes, the mortgage you want almost 4 times the size of your current one, so unless you can significantly extend the term then your monthly repayments are going to be substantially more.
See a mortgage advisor and find out how much you can afford to borrow and then look for houses accordingly.

Previous mortgage = £50k
New mortgage = £190k

Surely you would expect payments to at least triple or quadruple if you're borrowing nearly 4 times more?

Also you should take off 10k to cover moving costs from your deposit (unless you have separate savings?) and you are unlikely to get an asking price offer. Probably best to work with a 40 k deposit. Moving is awful!!

Can you not extend the term of the mortgage

^ what they said.
It's OK choosing an area and house, but if you can't afford it, then it's not for you.

Op, it would be better to start from the other end, you have a 60k deposit plus 3xearnings which adds up to what?
Maybe bus any debt, gives you the amount you have to spend.

The last two houses (i’m older), I’ve bought 1980s houses that have been allowed to get scruffy, and done them up. They aren’t ancient, are usually structurally sound and generally cost a bit less.
A few months home decorating can save you a lot of money.

You will also have stamp duty and legal fees which reduces your deposit unless you have some other way of paying. We decided to stay put as we simply couldn't afford to move and still have a life.

and you are unlikely to get an asking price offer.

I find this really weird. Why do people overprice their houses? We got asking price for the two houses we were selling to buy our next one and offered asking price on the one we're buying. We feel like we're getting a bargain as well.

Interest rates will start to be better if you make sure you have at least 25% deposit. So with £60000 you want to go for a maximum of £240000. Try that in some calculators and see if it helps.

And yes, you will need to factor in moving costs (legal, survey, stamp duty, removals) which will eat into your £60k unless you have savings

How much were you hoping to pay a month OP?

What a strange post

OP, if you priced your house higher, like all the kite flyers, it would give you more equity, so you would have less mortgage on the next place.

Umm you do realise the average rent for a house in the UK isn’t far off £900 and the average monthly mortgage payment is £700 ish.

So yes this is the situation a lot of people are in. Right or wrong... it’s just how it is.

£300 per month is a low mortgage. A quick google suggests that the average is £669 per month.
Our mortgage is £850 per month, approx 20% of our take home pay. Some areas mortgages averages 44% of take home pay. So yes, it is a fairly normal situation.

Maybe you won’t be able to make the jump from a house valued at £110k to one valued at £250k in one step. (That’s why it’s called a property ladder😀)