upgrading

Eoghan25

i am currently thinking of upgrading probably early next yr i reckon i need 70k extra for what i want... this would bring my mortgage up to 300k. I am currently on salary 43k no dependants and no outstanding loan it will be just myself applying. Is there any chance of getting lenders to agree to this kind of loan i was told i was pushing it getting 230k for my initial loan so am i dreaming thinking i could get 300k(320k would be even better) . any feedback from people who have done it or any brokers etc how much they reckon the max i could get?? would be great. i am 27 also so i reckon am young enough to go for longer term mortgages.

cheers

The_Conductor

Eoghan25 wrote:

i am currently thinking of upgrading probably early next yr i reckon i need 70k extra for what i want... this would bring my mortgage up to 300k. I am currently on salary 43k no dependants and no outstanding loan it will be just myself applying. Is there any chance of getting lenders to agree to this kind of loan i was told i was pushing it getting 230k for my initial loan so am i dreaming thinking i could get 300k(320k would be even better) . any feedback from people who have done it or any brokers etc how much they reckon the max i could get?? would be great. i am 27 also so i reckon am young enough to go for longer term mortgages.

cheers

In all honesty- with the increase in interest rates that has occurred, and the further increases forecast, it is highly possible that your borrowing capacity has in fact decreased rather than increased- though its impossible to say without knowing further personal particulars. If you are in a permanent pensionable job (preferably permanent in the Public sector) then it is possible, but unlikely, that you would get 300k as a sole borrower on a salary of 43k. Contact your lender and take soundings elsewhere to get an indication of the state of the lending market. Unfortunately a lot of the lenders are running scared.....

El Stuntman

taking on debt equivalent to almost 8 times pre-tax income is probably not clever at this time

would be very interested to see if the banks will still allow this degree of leverage

Gurgle

Eoghan25 wrote:

i am currently thinking of upgrading probably early next yr i reckon i need 70k extra for what i want... this would bring my mortgage up to 300k. I am currently on salary 43k no dependants and no outstanding loan it will be just myself applying. Is there any chance of getting lenders to agree to this kind of loan i was told i was pushing it getting 230k for my initial loan so am i dreaming thinking i could get 300k(320k would be even better) .

A lot depends on the value of the house, and what percentage of it you're borrowing.

If your equity on the old property gives you 20% of the value of the new house, you should have no problem borrowing 300k as the new house will only be 80% financed.

Eoghan25

Eoghan25 wrote:

i am 27 also so i reckon am young enough to go for longer term mortgages.

cheers

eh, your no spring chicken!

Cheers

jimmycrackcorm

El Stuntman wrote:

taking on debt equivalent to almost 8 times pre-tax income is probably not clever at this time

would be very interested to see if the banks will still allow this degree of leverage

Was listening to the in-laws talk about getting their first mortgage and surviving on soup for two days each week to have enough money to pay. Now that puts things into a different perspective.