Q My husband and I own a home worth about £400,000 which is now totally mortgage free. He commutes a long way to work each day and as we have two young children, we are considering moving to the town where he works. Property there is more expensive, but the schools are good and the children would benefit from seeing more of their father during the week. Ideally we would like to make a step up and buy a detached family home, which in the area we want (where there’s a school we like) would cost about £725,000. We would need to borrow £325,000 to do this. I am a stay-at-home mum but my husband earns £48,000 per year plus about £8,000 in commission.
I have heard about mortgages where you can borrow more than the typical 3.5 times annual income which we would probably need to apply for. We feel we can afford to stretch our finances to take on the extra borrowing as we have no other debts or loans and have some savings in the bank. We could accommodate the repayments in our monthly household budget. Can you please advise us on how to access these type of mortgages, where do we find them and how can we maximise our chances of being approved for the mortgage loan?
A To get a mortgage of £325,000, you would have to be able to borrow just over 5.8 times your husband’s total salary (including bonus) which, surprising as it may seem, is not an impossibility. According to independent mortgage advisers, Clifton Private Finance, a few lenders are prepared to offer a…