Why wont the give me a bigger mortgage?

Trigger5012

i currently have a mortgage with nationwide.

we bought i house for 82,500 in 2005.

we still owe 68,000 as of now.

we want to move and i have seen a great house for 64,000.

but the problem is, we currently pay £504 pcm for our mortgage, and i have entered my details onto their how much can you borrow calculator, and the will only give us 51,000. which works out to roughly £360 pcm for the mortgage, so why will they only give us this much when we are CERTAIN we can afford more, and they have proof that we have paid a lot more for 5 years. (currently in a 10 year fixed rate).

can i go and see them to convince them to give us more? or will they just tell me to go away. because we need to move, and unless they give us more money we will just have to sell and rent. surely it makes more sense to keep a customer rather than loosing one?

any help is much appreciated.

Caz3121

how much is your current house worth and how much deposit will you have?

Yorkie1

How have your circumstances changed in the last 6 years - are you very close to retirement, have lower incomes, more debt, more dependents, etc? Credit scoring has tightened up significantly.

rising_from_the_ashes

trigger5012 wrote: »

i currently have a mortgage with nationwide.

we bought i house for 82,500 in 2005.

we still owe 68,000 as of now.

we want to move and i have seen a great house for 64,000.

but the problem is, we currently pay £504 pcm for our mortgage, and i have entered my details onto their how much can you borrow calculator, and the will only give us 51,000. which works out to roughly £360 pcm for the mortgage, so why will they only give us this much when we are CERTAIN we can afford more, and they have proof that we have paid a lot more for 5 years. (currently in a 10 year fixed rate).

can i go and see them to convince them to give us more? or will they just tell me to go away. because we need to move, and unless they give us more money we will just have to sell and rent. surely it makes more sense to keep a customer rather than loosing one?

any help is much appreciated.

Welcome to the boards!:wave:

Apologies if I've picked this up wrong.

You bought your house for £82,500 and still owe £68,000:

a) what is the current market value of your house?
b) what was your LTV rate (if you've not remortgaged already, it must've been around 80 - 85% when you took it out)?

As Yorkie says, things have changed hugely since you last applied for a mortgage and many lenders are offering lower salary multiple amounts and asking for higher LTV rates.

If you have no other money to put towards a new house then unfortunately your deposit may be too small to now qualify for a higher salary multiple.


What else has changed in that time?

Do you "need" to move because you can't afford your current outgoings?

ado

This might sound like a silly point but are you using the calculator properly? If for example you leave your current mortgage payments in by mistake it reduce the total you can borrow.

Evilm

Have you put in the new property price into the calculator? Its possible that £51k on a £64k house (80% LTV) is the highest LTV they are prepared to accept.

The mortgage companies have changed their LTV requirements and Salary multipliers since 2005 so its possible that in their new criteria that is all they are prepared to give you.

kingstreet

Yorkie1 wrote: »

How have your circumstances changed in the last 6 years - are you very close to retirement, have lower incomes, more debt, more dependents, etc? Credit scoring has tightened up significantly.

Answer this please, trigger!