Bram Vis answers your mortgage questions
I earn £65,000 per annum. I own a flat worth £250,000, but I have seen another flat I want to buy for £395,000 - can you help, what should I be aware of, and can I get it?
It depends on a few things: Your Mortgage - if you are buying this flat on your own, it somewhat depends how old you are and what occupation that you have, and how long you have had it. Anything that will indicate to a lender whether your income is likely to fall, stay the same, or rise over the next few years. There are no hard and fast rules about this, but you can assume that a useful starting point would be 4.5 times earnings – sometimes a little bit higher. So, we are starting with a maximum mortgage of £292,500.
The Deposit - If you are looking for a property worth £395,000, then the difference has to be the deposit figure of £102,500. It is likely that this sum, at least, would be in the gain of a previous property. There will be all sorts of costs in moving as well. The main ones to watch out for are SDLT (Stamp Duty), an arrangement fee, solicitors fee, valuation Fee, Broker Fee and moving fees.
It can be done – of course, it can be done – but whenever you move to a new house – money can seem to trickle out of the door! It is the amount of the mortgage to be concerned with, but it is also the cost of the extras as well that simply must be accounted for.
Please don't hesitate to call me directly on 020 7504 1090 or 01983 642 643 if you would like to talk, this or a similar scenario, through with me.
The information contained in this answer is for illustration purposes only and does not contain all the details required and should not be used as a personal recommendation without them. Do contact Bram if you would like an entirely free consultation to talk through your requirements, exact circumstances and best mortgage options.