Mortgage Advice...

Hello me and my partner have seen a house we love on the market for £155k our house has been valued at £120k (we bought it for 105k) so we would need to borrow the rest .

If i fill in a mortgate calculator online they say we can borrow £125k on our current salaries.

What i am really trying to ask is, Is there anyway of taking on a mortgage for longer than 25 years to lower the monthly repayment?

Or are you going to shatter my dreams and tell me i cant afford the house???

Reply to
stephen
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I have read that post back and it makes no sense to me so you dont stand much chance let me simplify the question....

How accurate are these mortgage calculators?

If we have an exisiting mortgate of say £95k are we likely to be able to borrow enough to buy this new house?

Is there anyway of taking on a mortgage for longer than 25 years to lower the monthly repayment?

Reply to
Steve

Depends. I assume you are talking about a bank's website where you enter your salary and it tells you how much you can borrow? Different banks and building societies will have different rules for calculating how much you can borrow, so try more than one. Make sure you can actually afford the repayments, and don't forget that interest rates could go up.

There is a page here where you can get figures from several banks, though for a lot of them it just says "Based on ability to pay by lender":

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You want to by a house for 155k, you can sell your house for 120k, you have a mortgage of 95k. Your total debt will be:

155+95-120 = 130k

you say you can borrow 125k, which isn't enough, but it's close, it may be worth talking to banks and building societies to see if you can get a bit more. You could try putting in an offer for the house you want at what you can afford - the worst that can happen is they say no, but then you also have to consider that you may not get your asking price for your house.

Do you have any savings?

Yes, I have seen websites offering up to 35 years. Have a look at the websites of banks and building societies.

Reply to
Gareth

Stephena, if I understand you right, you stand to make £15k from your property - yes? And the property you wish to buy is £155k, so you need a mortgage for £140k - correct? By the sounds of it you have tried out a few online calculators and you are coming up £15k short. Ok, firstly, on a postive note, it sounds like you can put down a 10% deposit which means you can choose from a much more competitive set of mortgages with better interest rates. Try the following mortgage search engines

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I am not sure what salary multiple the calculator you mention is using but you might want to try the Coventry Building Society, I got 4.5x salary but it is different for couples.

To reiterate what Gareth said "Make sure you can actually afford the repayments, and don't forget that interest rates could go up.

Reply to
bob

Oh, and depending on your age most banks offer 30 year mortgages.

Reply to
bob

In message , snipped-for-privacy@stephena.co.uk writes

A lot of people may say that now is not a good time to buy a house but, assuming the prices are correct, (or at least the difference), all you are doing is moving most of your debt from one house to another, and taking out a bit more debt in order to be able to live in the house you really want.

So, assuming you are happy to try and make the move in the current market, that you accept that values may fall, and that you know you can afford the mortgage repayments..... etc. Etc.

If you find a mortgage lender, (which you should be able to), you may find that you would prefer lower repayments - if so, you could consider an interest only mortgage, (or a part interest only mortgage). Either will make your monthly payments lower, but with both you would not be paying back any, or part of, the capital.

Reply to
Richard Faulkner

You would also need to sell your own house. What's the market like at the moment in your area?

Reply to
mogga

In message , snipped-for-privacy@stephena.co.uk writes

This question can not be answered without you telling us how much you owe on your current mortgage.

Yes, you can have a mortgage for as long as you like, certainly up to your planned retirement age and possibly beyond if you can show that you could still afford the repayments in retirement.

BUT be aware that doubling the mortgage period (say) does not half the payments. The effect of extending beyond 25 years isnt as large as you may think and, fopr most lenders, it doesnt alter their ability to lend.

Reply to
john boyle

Almost. You seem to be £5k short, and you also need to think about incidental costs: Estate agent fees, legal fees, stamp duty, removal. Can't you haggle the price down?

Yes, but if you go for 30 years instead of 25 it only brings the payments down by some 8% (based on 5% interest rate -- it brings them down less for higher rates, more for lower ones). But (quite apart from the inadvisability of stretching yourself at a time of historically low interest rates -- they're more likely to go up than down in a multi-decade time frame) bringing down the payment might mean you could *afford* to borrow more, but it doesn't mean you'll be *allowed* to borrow more, since the limits are usually determined on the old trusty salary-multiples formula instead of on affordability. Well, you can get loans based on affordability, but the interest rates tend to be higher than with salary multiple based ones.

Sorry. :-(

Reply to
Ronald Raygun

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