Trading up

Discussion in 'Mortgages and buying and selling homes' started by adriansimmo, 30 Dec 2018.

  1. adriansimmo

    adriansimmo New Member

    Posts:
    2
    Hi there.
    Me and my wife are thinking about trading up in 2019.
    We bought our home in 2015 for 51k and have renovated and done as much as we could to make it a lovely but small home.
    We have a 2 month old baby and we have realized fairly quickly that it is going to be quite cramped so we are going to get the ball rolling on trading up and to be prepared when we want to grow our family.
    Our house is valued at 150k at the moment and there is 46k owed on mortgage.
    My question is this, would the banks be willing to lend to us at this stage? Our combined salaries are 75k and there are some small loans (10k) that could be paid off from house sale if needed.
    The approx amount required would be 200-220k.
    My account is used for most of the bills and big payments so it may not look like a massive balance at any given time but my wife’s account is what we save with/keep most of our money in.
    Just looking for your thoughts please on how best to get our ducks in a row for what lies ahead.
    I will be talking to the broker that got us our previous mortgage in the new year.
    Also my wife will be on maternity leave until May, although it will probably be after this when we get going.
     
  2. HollowKnight

    HollowKnight Frequent Poster

    Posts:
    83
    It would be easier to offer above if you fill in the money makeover info sheet. Be sure to include interest rates etc.

    Age:
    Spouse’s/Partner's age:

    Annual gross income from employment or profession:
    Annual gross income of spouse:

    Monthly take-home pay

    Type of employment: e.g. Civil Servant, self-employed

    In general are you:
    (a) spending more than you earn, or
    (b) saving?

    Rough estimate of value of home
    Amount outstanding on your mortgage:
    What interest rate are you paying?

    Other borrowings – car loans/personal loans etc

    Do you pay off your full credit card balance each month?
    If not, what is the balance on your credit card?

    Savings and investments:

    Do you have a pension scheme?

    Do you own any investment or other property?

    Ages of children:

    Life insurance:
     
  3. adriansimmo

    adriansimmo New Member

    Posts:
    2
    Thank you very much hollow knight.
    Details below

    Age:32
    Spouse’s/Partner's age:28

    Annual gross income from employment or profession:32000
    Annual gross income of spouse:43000

    Monthly take-home pay 4800

    Type of employment: e.g. Civil Servant, self-employed
    Both PAYE workers in private sector

    In general are you:
    (a) spending more than you earn, or
    (b) saving?
    Not saving but my wife keeps approx 10k in account. Mine would be 1-2k paying most of the bills and jobs on current house etc through my account but money coming in and out of my account frequently

    Rough estimate of value of home 150k
    Amount outstanding on your mortgage:46k
    What interest rate are you paying?3.7%

    Other borrowings – car loans/personal loans etc
    Bank loan 7k owed/car finance 315 paid off in August will clear from sale of property
    Wife 2k loan and car 315 on pcp finance

    Do you pay off your full credit card balance each month? No credit cards
    If not, what is the balance on your credit card?

    Savings and investments:0

    Do you have a pension scheme?No

    Do you own any investment or other property?No

    Ages of children:2 months

    Life insurance:85 per month

    Health insurance and other bills come from my account maybe another 250 per month
     
  4. Leo

    Leo Moderator

    Posts:
    9,557
    Many lenders will assume that finance will be simply rolled over to new cars once the current terms are paid off, and this will reduce the affordability calculations. If at all possible, clear these loans prior to applying.