Can someone sense-check my understanding of mortgage situation?

[JohnnyMcGrathSaysFuckOff]

We are making a really big life decision to move from a cheap area of the country to one that is £££ (think: North West to Home Counties style move).

We currently have a property worth about £270k with outstanding mortgage of £130k. I am assuming we will actually sell for c £230k as a conservative estimate due to current turbulence in market. So assume we will clear c £100k on current house.

We also have around £90k put aside for a deposit (exclusive of moving costs/ solicitors' fees). So total deposit of around £190, poss £200k.

My new salary will be just under £90k.

Based on this it looks like most banks would lend us around £300k. We could therefore realistically look at properties just under the half-million mark.

Does that sound about right?! It is just so hard to see real detail as banks' online calculators are so top-level....

Will depend on your outgoings as well as income - can you go online and do a decision in principle? I know they aren't binding but would give you an idea. That's just over 3 x income isn't it . I'd do one that doesn't leave a hard footprint on your credit file.

Yeah we should do that, I think. It seems reasonable to me - we live fairly modestly overall. Just such a big decision!

Yes that figure sounds right to me. The bank will also take into account debts, credit cards or other loans being paid off.

And you will need to show 3 months of payslips, so hopefully your job starts soon… I’m not sure if they take into account how long you’ve been in the job..?

I’m a mortgage advisor. With a salary of £90k some lenders will go to 5 x salary. As mentioned earlier any loans/credit cards and regular commitments will be taken into account and can bring this figure down. If you go to an independent mortgage advisor that offers whole of market searches they will be able to give you max lending with each lender. This is a better idea than doing lots of separate decision in principles as it’s very time consuming to go through it all again and again. Good luck with the move!

I’d focus more on the monthly repayment vs your take home pay. Is it doable?

Also depends on whether you have dependents on a single salary - some are more conservative if all the risk hinges on a single income. Don’t forget to factor in moving costs from your deposit or savings or elsewhere including stamp duty. On a £500k house that’s £12.5k

Are you a one income household? Will it be a thirty years mortgage or shorter?