Is 200k deposit enough

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I posted a thread the other day about stamp duty.
I inherited the house we're in (gifted) it's estimated approx £204 on Zoopla, it's had an extension kitchen diner, new garden, soon to have a larger porch and new windows on the front, so we've done alot of work to it.
We earn between us about 77k, something like that.
The house we love is £550k.
Do we stand a chance ???
This is all new to me, I've never had a mortgage as this was gifted and it's mortgage free.
Thanks all

On a 25 year term repayments would be around £2k pcm. Your bills would likely increase too. I think you’re on the very cusp of anyone lending to you anyway but realistically do you want to make life that tight financially?

No way would I borrow £350k (plus whatever you need for the sdlt) on that combined salary. That's 5x your combined income.

I thought with this house a deposit we'd be in a good position, on the right move mortgage calc it says monthly repayments would be around £1500 which we could do

Thanks. Isn't it usually x4.5 salary ?

Sorry it's £1899 monthly repayments, was getting confused with another property !

Also the property has been on the market a while so hoping we could get it for abit less

If you mean the max they will lend you, I'm not sure, but you'd be very close to the limit. But it would be very risky to go that close anyway imo. It's a huge amount to borrow on that salary. But only you know your circumstances, risk appetite, future earning potential etc, so if you can afford the repayments and the bank will lend the money then go for it!

Find out if anyone will lend you that much. 10yrs back, on a salary of 70k the most I could get a mortgage for was £215k. But you need to ask a broker and see.

I think it’s too much pressure to be honest. You should look for a house in the 350-400 range max I feel.

Get yours properly valued Zoopla is not reliable

Thank you, this is why I posted, because we are complete newbies to this and haven't a clue basically ! All I know is we've got a good deposit.
I do get extra income with I think they take into account ? It's not much but an extra £650 a month.

We have an appointment with a mortgage broker this week.

I don't have many outgoings other than bills. Dh has things like car insurance etc

It’s possibly on the cusp of affordability. It’s not just 200k, it’s minus stamp duty, minus selling and buying costs, minus surveys etc.
The stamp duty is 17.5k
solicitors in the region of 3
estate agent fee 2.2
survey 1/1.5k
moving costs minimum of 1.5k right up to 4/5

So you’ve actually only got about 175 to put down on the next house.

Zoopla estimates are way off, look at right move sold prices for your area, get 3 estate agents out to value and see where you stand. Some areas don’t go to asking price on most properties.

I think a lot of people on here will find it hard to relate to being completely mortgage free and then choosing to pay 2k a month on a mortgage, which is a massive payment on your salaries. If you’re good at budgeting it is possible but remember to calculate how much more your other bills will be if it’s a much bigger house- council tax, gas and electric, maintenance, etc

When it comes to valuing your own property Zoopla can be way off. I find it tends to over value but if you’re had work done Zoopla will not have taken that into account. It works on local sold prices and house sizes.
So get yours valued so you have a better idea of what you already have. Don’t assume that the highest estimate is what you’ll get. Ask the estate agents for a realistic valuation.
Then mortgage. How old are you both? If you’re young you might get a 35 year rate. Do you have dependents? Large outgoing such as nursery fees or child maintenance? Are your jobs both steady and secure?
Mortgage companies just want their money to be safe so your large deposit makes it more likely you’ll get a deal. You can make enquiries with a free service such as London & Country.
Then. It’s all up to you how much you want to put all your money into a house! It will be tight on those incomes even if you get a deal.

Thank you, and yes we will.
The area is sought after, primary school within a 4 minute walk, local shops and pub, local park, so I am confident it would sell quickly. The same houses go for around 200k and they are houses that haven't had anything done to them in years and years.

We also have about £45k in savings for stamp duty and fees.

www.halifax-intermediaries.co.uk/tools-calculators/mortgage-affordability-calculator.html

Put your details in this, better than a standard calculator.

How old are you?

Is there a chance your salary will increase in the near future?

Lots of people take mortgage terms out that are initially longer than 25 years and when they remortgage they cut the term as their salary has increased. (To be fair you can do this if you start out with a 25 year term.)

The mortgage broker if they are any good will give you all this information.

The mortgage calculators are useful, but I’d also sit down and look at your monthly outgoings particularly as it sounds like you currently do not have any housing costs(?) to consider. What are you currently doing with that £1899 each month - saving it or spending it elsewhere?

Look at both your monthly incomes and all your must haves and nice to haves in terms of expenditure. Then think about your less frequent expenses such as annual costs. How much is left? It’s important to build in breathing room too - how will you cope when bills go up again etc?

It also depends on what your requirements are housewise and your area. If for example you have 2 kids and need to be in the area for work and school, and a 3-bed semi costs £550k then it’s a different proposition than if you’re choosing a larger than necessary house in a fancy area you don’t need to be in for £550k.

Contact a mortgage broker for advice

I am 35 dh is 42

We have kids but no nursery fees

OP you are clearly good at budgeting just make sure you have a full survey on your new property and make sure you also get anyone you know who is a builder to have a look as well.

It’s on the higher end of borrowing but if you are both disciplined and good with money completely doable. I did a move with similar figures about 10 years ago and never felt like it was too much. Although 10 years ago our interest was much lower, so something to consider. Although thinking back we had nursery fees on top, which we then directed as overpayments once the nursery years were done. I wouldn’t do it though if you have any debts/ car payments etc though.

Do you need to move? It sounds like you have a lovely house in a great area, you are mortgage free and have good savings.

To move will use up your savings, commit you to a big monthly mortgage for the next 25years.