Will we get a mortgage?

[Stomnnorm]

Hello all,

We really want to move, but how realistic are we being?

I own a flat that has an IO residential mortgage with a consent to let granted. There is only about 5k equity in the flat and is almost 3 years into a 5 year let, which pays about 125% of the mortgage.

The flat I actually live in has around 55k equity in it and the fixed rate mortgage term has ended.

My girlfriend has just moved in with me and also has a consent to let with her mortgage company. Her tenants have a tenancy agreement until July next year. Her house has around 80k equity in it and she has 22 months left of her fixed rate mortgage.

Typically, the houses in the area we want to move to, start at around 350k. If it does work, I understand we'll be looking at these type of properties (although the now fashionable open days don't help keep the asking price static).

We have a combined salary of around 65k. We want to try for a family next year and the way I see it, if it doesn't fit the lenders criteria now, it certainly won't when only one of us is working and we have a young child (if everything goes to plan).

So, if I sold the flat we currently live and take our deposit to around 70k, how feasible is this?

Sorry for the long post, I just wanted to try and give people as much information to work with.

Thanks in advance.

[Stomnnorm]

Thanks for all the quick responses. I didn't think I'd hear anything back at this time!

It's going to sound a bit backwards but my concern with the affordability is with the lending criteria rather than costs. I hope to get a promotion within the next couple of weeks which will raise my salary by 10k. Also, we will look to sell my girlfriends house after the fixed rate has finished and pour the equity into this house (overpayments dependent).

Sarnie, what sort of rates / repayments do you think we'd be looking at?

Thanks all.

[Stomnnorm]

SunsetZed said:

I assume that you've spoken to the lender of the mortgage on this and it's not portable to the new place? If it is you could sell this property now and transfer the mortgage to the new place whilst also selling the property you live in now.

More than likely you'll get more for it in 2 years time of course so ideally would be better to sell it later but if you're struggling to meet the criteria it could be worth looking into.

If we haven't bought somewhere by next July, we'll certainly look into this. It's quite strange wishing your property wasn't rented out!

[Stomnnorm]

Sarnie said:

No problem, although it's far too broad a question to be able to pinpoint specific rates or repayments as I have know idea about what term you want it on, what product you would want it on and don't know your full details to be able to say who will lend to you.

Feel free to drop me a line if you want a more specific chat?

Thanks Sarnie, I will pm you shortly.

And thanks to everyone else for your posts. I've given it even more thought today and although it could potentially be a short term stretch, it's probably now or never.

The other idea was to stay where we are for a few more years and make use of the garage block by buying a Noble next year. I guess that will be on the back burner for a few more years now!

Thanks again.