What is the best method to find out how much a mortgage company will lend me?

appolospb

Can someone please advise me of the best method to find out how much a mortgage company will lend me. I have consulted several 'how much can i borrow' calculators on banks websites but the amount they say they would lend me varies by as much as £20k between lenders. I dont want to waste peoples time viewing properties i may not be able to afford so i need to find out exactly what i can borrow. Last time i purchased a flat i used a mortgage advisor at Bairstow eves but i am reluctant to use them again as i know they are not independant and may be biased towards certain lenders. Am i better off approaching each bank one by one and phoning them up and asking them how much they will lend me or should i seekout a independant mortgage advisor?. If i go down the mortgage advisor route where do i find one, are they listed online or do i go into an estate agent etc?.

Thanks in advance for any help anyone can give

castle96

Use a 'whole of market' broker. They have sophisticated sourcing systems. Should not charge for this initial service.

GMS

As you have found out the lender's vary in the amounts available to you.

Do not go to banks individually as they will credit score you and have an impact in any subsequent applications you make.

A broker could help you decide what you can get. Get copies of your credit files from Experian, Equifax and Call Credit. Pay for the £2 statutory reports and pass them to a broker.

Have you found a lender who will loan you enough up to now?

ACG

Lenders work out how much they will lend in different ways. Some will allow 100% of bonuses/overtime etc, others 50% others none, child maintenance is looked at in different ways too.

Your best bet is to see a whole of market mortgage advisor. They will be able to save you trecking up and down the high street and find other lenders you may not have heard of.

appolospb

Thanks for the quick replies. Yes i had heard through a colleague that phoning around several banks asking about morgages can effect your credit score so i am glad i havent done that. I guess what i need is a 'Agreement in principal' so i have a basic idea of what price range of properties i can look at.

Where do i find a 'Whole of market' mortgage advisor ? . Do i speak to my local estate agent or is there a website where i can find one?. Do i visit them in a branch or is it done over the telephone?. Finally does it cost anything to get a agreement in principal?.

Thanks

HappyMJ

appolospb wrote: »

Thanks for the quick replies. Yes i had heard through a colleague that phoning around several banks asking about morgages can effect your credit score so i am glad i havent done that. I guess what i need is a 'Agreement in principal' so i have a basic idea of what price range of properties i can look at.

Where do i find a 'Whole of market' mortgage advisor ? . Do i speak to my local estate agent or is there a website where i can find one?. Do i visit them in a branch or is it done over the telephone?

Thanks

Do you really want to borrow the maximum amount possible?

Banks can also do an affordability calculation taking into account all your income and expenses and then using what is left over as a mortgage payment they can then work out how much they can lend. However, if you are going to stretch yourself to the limit you would have to go onto a long term fixed rate and that will reduce the amount you can borrow.

If you have tried the mortgage calculators on the web I would use the lower figure to look for and negotiate prices on properties and if you find a property slightly higher than that amount then you can shop around mortgage lenders.

appolospb

HappyMJ wrote: »

Do you really want to borrow the maximum amount possible?
QUOTE]

I am currently renting a flat in a complex that i would love to own a property in. The flat complex is quite a expensive complex (For flats in this area) so i need to find out if its possible for me to afford a place in this location or if its just a pipe dream. There is a flat up for sale in this complex that i would like to take a look at. The property may be outside my price bracket but until i can establish what i can borrow i dont know if this is the case or not. Hope the situation makes sense now.

Idiophreak

appolospb wrote: »

HappyMJ wrote: »

Do you really want to borrow the maximum amount possible?
QUOTE]

I am currently renting a flat in a complex that i would love to own a property in. The flat complex is quite a expensive complex (For flats in this area) so i need to find out if its possible for me to afford a place in this location or if its just a pipe dream. There is a flat up for sale in this complex that i would like to take a look at. The property may be outside my price bracket but until i can establish what i can borrow i dont know if this is the case or not. Hope the situation makes sense now.

...but you should really be thinking about whether you *should* borrow that much, not just about whether you can. By definition, borrowing the maximum you're permitted will put a massive drain on your income and make life pretty tough for you.

appolospb

What you are saying is correct. However i am currently renting a flat in the complex i am intrested in purchasing a property in. The flat i am renting is also larger and more expensive then the one i am intrested in buying. So you can see why i am intrested in seeing if i can get a mortgage to purchase a property in this complex. I wouldnt be able to rent here if i couldnt afford to live in this complex. As they say most of the time the cost of the rent is greater than the mortgage payments would be. I have a £25k deposit, 0 dependants, 0 debts and have owned a property before.