Mortgage Understanding

jahig

Hi,

wondering if anyone can enlighten me. I am currently having a look around for a mortgage and my first home and have confused myself with how much I can afford.

I know that the on-line mortgage calculators are just a guide and as such I have been treating them as that. Now here is where I have confused myself. As an example say the bank calculator says they will lend me £120k. Does this mean:

My top limit for a house is 120k and that I would need to provide a deposit of 12k(10%) or 18k(15%) etc.

Or

The bank will loan me up to 120k and I can add a deposit to that initial loan to afford a home of £133k(10% deposit) or £147k(15% deposit).

Hope someone can clarify this for me

Thanks

James

KRB2725

It is what the bank will (may) lend you, so you add your deposit to that amount.

Thrugelmir

jahig wrote: »

The bank will loan me up to 120k and I can add a deposit to that initial loan to afford a home of £133k(10% deposit) or £147k(15% deposit).

Hi welcome to the board,

85% of £147k = £125k.