Moving House - New Job for wife, low cash reserves
Discussion
Hi All,
Just looking for some advice RE moving house - we've never sold before, but we are considering a new place closer to the station which is bigger, and better for my wife new commute. We'd be taking on about 100k more debt (approx £310k mortgage on £400k property). We currently have a property valued at 295k, vs mortgage at £190k
Couple of questions:
- My wife is likely taking a new job in London, which means moving company. She gets a base pay rise of a significant amount, but obviously the job is new. I'm still the major contributor to our joint income (2/3rds vs 1/3rd). How do mortgage companies generally see this kind of risk? Is this going to make moving a no brainer.]
- We spent quite a lot of money doing this place up. We have zero debt, but relatively little cash reserves (approx £8-9k). Is this going to be a problem, or can we safely extract some money from equity if we needed to? (I think we can get under 80% LTV, but not 75%, so we might have some headroom without ruining the mortgage rates!
Any thoughts welcome (#pagingsarnie?)
Cheers
Just looking for some advice RE moving house - we've never sold before, but we are considering a new place closer to the station which is bigger, and better for my wife new commute. We'd be taking on about 100k more debt (approx £310k mortgage on £400k property). We currently have a property valued at 295k, vs mortgage at £190k
Couple of questions:
- My wife is likely taking a new job in London, which means moving company. She gets a base pay rise of a significant amount, but obviously the job is new. I'm still the major contributor to our joint income (2/3rds vs 1/3rd). How do mortgage companies generally see this kind of risk? Is this going to make moving a no brainer.]
- We spent quite a lot of money doing this place up. We have zero debt, but relatively little cash reserves (approx £8-9k). Is this going to be a problem, or can we safely extract some money from equity if we needed to? (I think we can get under 80% LTV, but not 75%, so we might have some headroom without ruining the mortgage rates!
Any thoughts welcome (#pagingsarnie?)
Cheers
Pheo said:
Hi All,
We currently have a property valued at 295k, vs mortgage at £190k
So you have approximately £105k equity in the current placeWe currently have a property valued at 295k, vs mortgage at £190k
Pheo said:
We'd be taking on about 100k more debt (approx £310k mortgage on £400k property).
Meaning you'd have £90k equity in the new place.Do I take it this is the result of stamp duty, agents fees, misc moving costs etc., or are you extracting the cash for some other purpose (i.e. to bump up the cash reserves)?
Ian - well, via the normal mortgage repayment process, unless I misunderstand you? I don't have a magic pay it off plan unfortunately!!
Re equity - yes, we have approx 9k cash at bank. Fees I estimate in total (estate/stamp duty/sols) at 15000, so extracting some equity for those. It's possible we wouldn't need to by the time any deal goes through as we clear a lot of cash per month, but I'm planning worst case here not best.
I realise we are talking large sums here. This is South East, next to Brighton mainline. Still don't want to do something stupid just because it's expensive down here. Equally would like a home big enough for us to have a family in in 5 years or so. Our total combined income at the moment is £90k a year base plus bonuses.
Re equity - yes, we have approx 9k cash at bank. Fees I estimate in total (estate/stamp duty/sols) at 15000, so extracting some equity for those. It's possible we wouldn't need to by the time any deal goes through as we clear a lot of cash per month, but I'm planning worst case here not best.
I realise we are talking large sums here. This is South East, next to Brighton mainline. Still don't want to do something stupid just because it's expensive down here. Equally would like a home big enough for us to have a family in in 5 years or so. Our total combined income at the moment is £90k a year base plus bonuses.
It may be temporary, but don't underestimate how utterly s
t the train line is from Brighton into London at the moment!
On £90k, that mortgage won't be too bad. Mine is more on a 5 year fix and is only £1300 a month.
I've gotten a mortgage when my wife hadn't even started her new job yet, they gave it based on a signed contract and agreed start date.
t the train line is from Brighton into London at the moment!On £90k, that mortgage won't be too bad. Mine is more on a 5 year fix and is only £1300 a month.
I've gotten a mortgage when my wife hadn't even started her new job yet, they gave it based on a signed contract and agreed start date.
p1stonhead said:
It may be temporary, but don't underestimate how utterly st the train line is from Brighton into London at the moment!
On £90k, that mortgage won't be too bad. Mine is more on a 5 year fix and is only £1300 a month.
I've gotten a mortgage when my wife hadn't even started her new job yet, they gave it based on a signed contract and agreed start date.
Agreed. Fortunately I don't need to use it!! Bit of a rock and a hard place that one! Hopefully getting better with the new Thameslink trains!t the train line is from Brighton into London at the moment!On £90k, that mortgage won't be too bad. Mine is more on a 5 year fix and is only £1300 a month.
I've gotten a mortgage when my wife hadn't even started her new job yet, they gave it based on a signed contract and agreed start date.
Gassing Station | Finance | Top of Page | What's New | My Stuff