Mortgage advice - breaking even.

6
Found 25th Oct 2017
Hi,

I’ve got an appointment tomorrow with the mortgage advisor from my esisiting mortgage company (Skipton. I’m looking at topping up my mortgage in order to buy a bigger more expensive house (would be borrowing an extra £18,000).

Equity I’ve got is £80k.
Earn £35k + £3k bonus/overtime
Ive got about £6k on 0% intersted credit card.
The affordability check said I could borrow an extra £38-40k, but I only need £18k.

However my bank statements show me pretty much breaking even each month, and are slightly cocked up as I’ve been passing money through my current account to pay off credit cards.

Im a little concerned that the underwriter will look at this and see if I’m breaking even, how can they lend me more?

Ive not applied for a mortgage since the stricter lending was introduced, last time I had to show 1 months bank statement + 3 months wage slips.

Any advice/reassurance would be appreciated!

Thanks

Dan
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if your bank account show you are only just breaking even, how are you going to afford the repayments on a further £18k? What affordability criteria are you applying? Is there an area you are overspending on that you can cut back? Don't forget, if you can't pay your mortgage, you could lose your home.
I’ve been paying off my credit card as fast as possible with all surplus cash I had. I’ve now paid a big chunk off and can afford to reduce the monthly payments. Also I can cut down my luxury’s, that I can show in my latest statement
borat123410 m ago

I’ve been paying off my credit card as fast as possible with all surplus c …I’ve been paying off my credit card as fast as possible with all surplus cash I had. I’ve now paid a big chunk off and can afford to reduce the monthly payments. Also I can cut down my luxury’s, that I can show in my latest statement


I'd be as up front with them as you can be. Tell them you have been paying off your debts at more than the minimum amount. Unless your bonus is guaranteed, it is unlikely they will use this in calculating how much you can borrow. £18k isn't a huge amount extra to add to a mortgage, but don't forget interest rates won't stay this low foreverv so do factor this in. Also moving costs, stamp duty, solicitors fees etc.
Good luck with it all. I love looking on property websites but hate moving house.
Just extend the term - a few more years, and keep the repayments essentially the same.
For a start you should see if you can do a balance transfer of that CC debt to an interest free one (there are always 12-18 month deals around)
Bigfootpete17 m ago

For a start you should see if you can do a balance transfer of that CC …For a start you should see if you can do a balance transfer of that CC debt to an interest free one (there are always 12-18 month deals around)



OP has stated in the opening post that the 6k is on a 0% CC.
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