How much can I get?

[wilson83]

Hello, I was hoping someone would be able to offer some advice. My husband and I currently live in a 2 bed mid terraced house in Hampshire. It has recently been valued at �126,000. We have made �10,000 equity in 2 yrs. My annual wage is �13,000 and my husbands is �19,000. Can anyone tell me how much we might be able to borrow if we wanted to move to something a little bigger? Our current mortgage is at �107,000 and we could get another �5000 deposit (maybe more). I don't want to bother going to see our financial advisor yet, I just want an idea. Thanks in advance

[Ethel]

You could borrow �112,000 on income.

Plus �10,000 equity.

Plus �5,000 from savings.

�127,000 approximately.

This assumes you sell at the asking price, but doesn't take into account legal fees and estate agents fees and so on.

You may be able to borrow more than the traditional 3.5 x both income multiplier, but as interest rates are set to continue to rise, this would not be advisable.

[minimonkey]

there are loads of websites with mortgage calculators on them e.g. moneysupermaket.com

[minimonkey]

actually i spelt it wrong it is moneysupermarket.com

[wilson83]

ive done a few of those websites previously and have found them completely inaccurate. For example, when my husband and I were trying to buy our current house, we were on �10,000 + bonus and � 16,000. (2 1/2 years ago) those sites were offering the very most at �72,000. We ended up seeing a broker and got �109,500 mortgage at a fantastic rate. That was with �6000 deposit only.