Mortgage - How much are we likely to qualify for

Advicepls

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Hi all

We are looking to move in the next year or so, continuing saving etc, I wonder if you might have an idea how much we are likely to get approval for based on the following:

Husband 36: 112k plus annual bonus of circa 15k before tax
Wife 37: 26k (part time at the moment)
3 children
Outgoings:
Childcare: 750pm
Car Loan: 270 pm
Current mortgage costs us 1589 per month
We owe circa 325k on our home and it would sell for the region of 500k.
We are saving 2k per month.

The properties we are looking at are in the region of 600k needing work. We would hope to borrow 480k and pay 20% deposit and have enough to do the work from the sale of our house and our savings.

Is this feasible? What about the car loan, would it make a big difference if we didn't have that?

TIA
 
To save me calculating your tax, how much is your after tax income monthly?

It's looks possible based on CBI rules, and affordability at 5% stress rate.
 
Take home pay after deductions (laya bik and all that stuff) is roughly 7500 per month
 
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You'll be grand!
Excluding bonus you can borrow up to 483 without breaching CBI rules.

Bonus is allowed for calculation based on the following rules (taken from Ulster bank)

"** The following rules should be followed:

  • Full amount of bonus can be included as part of the income calculation, up to a maximum of 20% of basic salary, capped at 3.5 times multiple
  • Bonus should be in receipt for a minimum of the previous 2 years
  • The average of the last two years bonus should be used
  • Evidenced by a bonus grant letter or other confirmation from employed"

Affordability, isn't an issue. Even with the car loan.

Your only real complexity will be trying to buy & sell at the same time.
 
Thanks so much for taking the time to reply RedOnion. That is great to hear. Yes the buying and selling bit at the same time could prove difficult. Where we live not many houses come on for sale, we'd nearly need to be sale agreed in advance of the one we are after coming up, but sure how do you plan that. Only thing is there is a big demand for our current house type so I feel that, once priced right, it should go sale agreed very quickly.
 
Buying subject to a sale has become slightly normal again, particularly with houses priced above starter FTB price brackets.
But you really have to have your own home on the market to be taken seriously, and you will need a buyer ready to close.

I'll be doing it next year, and plan to share my journey here.
 
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