Hello,
I've read the forums for a few years but this is my first post...
I would be grateful if someone could provide some advice on the best way for my partner and I to proceed financially from our current situation.
I earn a basic salary of £33500 and a bonus (non-guaranteed) of £12,000, paid monthly. I have P60/payslips to evidence that I have earned this consistently for the past 18 months, since I started my current job. My partner earns £30,000.
In December we purchased our first home, a one-bedroom flat in London, for £306,500 with a mortgage of £271,500 over 40 years. The current balance on the mortgage is approximately £269,000. the property we purchased required significant improvements which we have nearly completed. Once completed, we estimate the property to be worth between £360,000 and £400,000. It is a one-bedroom garden (basement) flat in a Georgian townhouse in Camden, listed building, conservation area, very close to the tube station and has 95 years remaining on the lease.
In order to renovate and furnish the property we had £20,000 which has been spent, we then took out a loan for £13,000 over three years (also spent) which has monthly repayments of approximately £440. We also have a credit card balance of approximately £3000.
These payments leave us with not a huge amount of disposable income.
My plan is to apply for a second mortgage after all of the renovation work is complete (i.e. once the value has risen) for enough capital to repay the loan and credit card (both of which have significantly higher interest rates than a mortgage would). However my concern is that in terms of earnings to borrowing ratio we are already close to the limit?
All of our debt is with the same lender, Nationwide.
I would be grateful for some advice. what we are trying to achieve is lower total monthly repayments.
Many Thanks for any advice
I've read the forums for a few years but this is my first post...
I would be grateful if someone could provide some advice on the best way for my partner and I to proceed financially from our current situation.
I earn a basic salary of £33500 and a bonus (non-guaranteed) of £12,000, paid monthly. I have P60/payslips to evidence that I have earned this consistently for the past 18 months, since I started my current job. My partner earns £30,000.
In December we purchased our first home, a one-bedroom flat in London, for £306,500 with a mortgage of £271,500 over 40 years. The current balance on the mortgage is approximately £269,000. the property we purchased required significant improvements which we have nearly completed. Once completed, we estimate the property to be worth between £360,000 and £400,000. It is a one-bedroom garden (basement) flat in a Georgian townhouse in Camden, listed building, conservation area, very close to the tube station and has 95 years remaining on the lease.
In order to renovate and furnish the property we had £20,000 which has been spent, we then took out a loan for £13,000 over three years (also spent) which has monthly repayments of approximately £440. We also have a credit card balance of approximately £3000.
These payments leave us with not a huge amount of disposable income.
My plan is to apply for a second mortgage after all of the renovation work is complete (i.e. once the value has risen) for enough capital to repay the loan and credit card (both of which have significantly higher interest rates than a mortgage would). However my concern is that in terms of earnings to borrowing ratio we are already close to the limit?
All of our debt is with the same lender, Nationwide.
I would be grateful for some advice. what we are trying to achieve is lower total monthly repayments.
Many Thanks for any advice