Family of 6 need to buy a bigger house, will we qualify for a bigger mortgage?

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usteb1

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Hi,

We are a family of 6, the house we have is too small. So we are thinking it may be possible to get a bigger house for us.

So we have left on our mortgage €130k, if we sell the house €195k we have €65k, so we are thinking would be enough for 20% deposit.

My husband gets €60k a year, I work part time €5k a year, we still have €5.5k left home improvement loan in credit union.

So do we have any chance to get new mortgage?

Thanks
 
€65k income at 3.5 LTI limit gives you mortgage of €227,500, but dependents will see that reduced on affordability grounds.
 
Ebs....
1. A couple with kids
A couple with one child must have €2,300 left in their bank account after all other expenses (like childcare, food, bills, etc.) have been deducted, and after their future mortgage repayments have been factored in.
Couples with more than one child will need an extra €250 for each thereafter.
 
vandriver said:
Ebs....
1. A couple with kids
A couple with one child must have €2,300 left in their bank account after all other expenses (like childcare, food, bills, etc.) have been deducted, and after their future mortgage repayments have been factored in.
Couples with more than one child will need an extra €250 for each thereafter.
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So that means we need to have 3050€ left in month to be afordable for the new mortgage. And do you know when you use calculator for mortgage is there calculating 4 kids?
 
I think the above criteria is worded poorly (I don't know anyone who has 2,300 left after paying their mortgage and all other bills including food).

The criteria would be to have 2,300 (plus 200 to 250 for each additional child) of your net monthly income left over after paying mortgage and any other loans. This is to leave enough to pay all your other living expenses.

The criteria is broadly similar across the banks, except that Ulster bank count children's allowance as income (they've a slightly higher threshold to pass), so they would normally lend more than the other banks to larger families.

You've a joint net income of about 4,250 per month? So 1,200 mortgage payment. Your ages will determine maximum term, but if you can get 25 years then around the 227k mortgage is possible (which is 3.5 times income).

But, you need to get rid of the loan. A 5k loan will reduce your mortgage affordability by over 20k.
 
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RedOnion said:
I think the above criteria is worded poorly (I don't know anyone who has 2,300 left after paying their mortgage and all other bills including food).

The criteria would be to have 2,300 (plus 200 to 250 for each additional child) of your net monthly income left over after paying mortgage and any other loans. This is to leave enough to pay all your other living expenses.

The criteria is broadly similar across the banks, except that Ulster bank count children's allowance as income (they've a slightly higher threshold to pass), so they would normally lend more than the other banks to larger families.

You've a joint net income of about 4,250 per month? So 1,200 mortgage payment. Your ages will determine maximum term, but if you can get 25 years then around the 227k mortgage is possible (which is 3.5 times income).

But, you need to get rid of the loan. A 5k loan will reduce your mortgage affordability by over 20k.
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We can get 25 years i think because we are 34 and 37 years old, we pay 620€ for mortgage and 560€for loan.
 
Ah, you'd be able to stretch to 28 years so.

That loan repayment would seriously reduce the mortgage amount you'd get. Are you repaying bit over 1 year or so? Are there shares in the credit union securing it?
 
We have 3700 shares and actual loan 8700,if we want to clear till zero, would left us 5000.
 
And now im thinking, we are on fixed rate, so if we sell house are we gona pay fine? Thanks
 
Actually, it might not be that bad. The loan was for home improvements, so a specific purpose. Banks assume things like car loans just replaced with another car loan, but they'd look at this differently.

I think you need to be thinking that the loan will need to be repaid when you sell house. (Even psychologically you don't want to be repaying a loan related to a house you no longer own).

So left over cash is down to 60k. Your max mortgage is c. 227k. So your max budget is somewhere in the region of 280k to allow for expenses.

Don't underestimate the costs and stress of moving. Estate agent fees to sell. Legal fees to sell, and buy. Stamp duty on purchase. Moving, storage, cleaning, redecorating, etc. Plus the stress of trying to coordinate sale & purchase. 4 kids is a big ask to be looking to stay with family / friends if you need time between selling and getting the keys.

And you're committing to c. 1,200 per month until retirement age.

Think all your options through.

usteb1 said:
And now im thinking, we are on fixed rate, so if we sell house are we gona pay fine? Thanks
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You'd need to check with your bank if there is a break fee. If you take the new mortgage from the same bank, they might roll the mortgage rate over.
 
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Thank you guys. We will go to tje bank tomorrow and we will see what they gonna say.
 
Another question i have, would you know how the bank will look at that, if we clear the loan in the credit union tomorrow and then we keep putting money to shares like to savings every week?
 
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