Max Borrowings Calculators on Lenders Websites

marathonic

What's your experience on the accuracy of max borrowing calculators on the lenders websites?

I plugged my details into HSBC's calculator:

Sole Borrower
Age: 29
Earnings: £26,617
Debts: 0
Dependants: 0
Deposit: £28k

It came up with max borrowings of £126k at 81% LTV.

I want to have a 20% deposit to ensure that the banks lending criteria is easier met so I'd be looking at a £112k mortgage on a £140k property.

In reality though, I do realise that what a bank advertises as available and what is ACTUALLY available are two different things in todays market.

What are your experiences with people borrowing at, or close to, the maximum figures quoted on lenders websites?

At the moment, I'm a FTB and am torn between buying a REALLY affordable house with a view to moving in 3-5 years or else borrow as much as possible with a view to living there for life. The second option seems more sensible considering the thousands of pounds in moving costs down the line - through legal, mortgage and replacement furniture fees (amongst other things).

beachie

I had this issue recently. Sometimes if you book a meeting with them they may lend you more than the calculator shows depending on your finances.

Presumably your not going to live alone for ever? You will meet or move in with someone, might have kids etc so this is something else to think about when deciding what type of property to buy.

I am on the same wage as you, looking for somewhere at the top of my budget so I can have two decent double sized rooms and rent one of them out. This would be more benefical to me I think than making a small jump from my current 1 bedroom flat to something only a little bigger.

You have a bigger deposit than me so should get a good deal. Personally I would buy the biggest place you can comfortably afford because even after 5 years in my current place I feel like I am throwing away money moving again.

marathonic

Yeah, I'm trying to cover all angles here - close to schools, etc.

I'm in Northern Ireland so property is a lot cheaper here. I'm just trying to determine whether, for example, the figures quoted on HSBC's website are the max available for their 'more desirable' customers.

For example, I'm going to be looking for 90% of what their calculator quotes for a REALLY nice 4 bedroom house or else about 65% of what it quotes for an okay 3 bedroom house.

I'm not worried about affordability because I can afford both mortgages, even with a 2% rise in rates. I could afford either with a 4%+ rise in rates if I rented a room or had a partner move in by the time the rises came.

I'm more worried about getting the mortgage approval itself.

ACG

Dont quote me on this im only going off bits i have read on here - but at the 90% deal i ge tthe impression HSBC would only lend around 3x your income. Presumably that increase as the deposit increases but i would be surprised if HSBC would lend you 5x your income with a 20% deposit.

marathonic

ACG wrote: »

Dont quote me on this im only going off bits i have read on here - but at the 90% deal i ge tthe impression HSBC would only lend around 3x your income. Presumably that increase as the deposit increases but i would be surprised if HSBC would lend you 5x your income with a 20% deposit.

Quite possible. That's why I'm posting here. Their calculator quotes 4.73 times my income and I'd be looking for 4.25 at a stretch (I could afford the bigger multiple but am trying to factor in some future rate rises).


EDIT: Sorry, I've just quoted you on it...

beachie

ACG wrote: »

Dont quote me on this im only going off bits i have read on here - but at the 90% deal i ge tthe impression HSBC would only lend around 3x your income. Presumably that increase as the deposit increases but i would be surprised if HSBC would lend you 5x your income with a 20% deposit.

HSBC tend to lend a little more for a single person. I was quoted 4.7 times the income was the maximum they were willing to go up to at the moment.

A single person with no dependants can get a much higher amount than a single person with a few dependants for example.

beachie

marathonic wrote: »

For example, I'm going to be looking for 90% of what their calculator quotes for a REALLY nice 4 bedroom house or else about 65% of what it quotes for an okay 3 bedroom house.

So very lucky to be able to have something so nice! The cheapest houses within 5 miles of here start at 160k for a 3 bedroom with a couple at 130k for a very small terraced house in a less than desirable area.

Only 3, 4 bedroom houses on the market within 5 miles of here at less than £180k - all terraced or super compact!

marathonic

beachie wrote: »

So very lucky to be able to have something so nice! The cheapest houses within 5 miles of here start at 160k for a 3 bedroom with a couple at 130k for a very small terraced house in a less than desirable area.

Only 3, 4 bedroom houses on the market within 5 miles of here at less than £180k - all terraced or super compact!

Yeah, property prices here are a lot lower than elsewhere in the country.

What stage are you at? Did you get AIP yet or did you just have a meeting with them? Any offers on houses yet?

beachie

marathonic wrote: »

Yeah, property prices here are a lot lower than elsewhere in the country.

What stage are you at? Did you get AIP yet or did you just have a meeting with them? Any offers on houses yet?

I have an agreement in principal for £135k with HSBC from their website but thats without any credit checks. Ideally I would like to find a house under the stamp duty but think this will be impossible.

I have a loan that is finishing soon so having to wait for that to clear before I go any further at which point I will meet with a mortgage advisor.

My property has been valued but moving all depends on selling it for a certain amount to raise a high enough deposit. Another property has just sold for the same as I purchased mine so I am fairly confident on the price - just need to find a buyer!

If it sells for that I will have a £10k deposit from the property sale so will need another £3.5k to raise it to the 10% deposit and associated moving costs which I am currently in the process of saving for.

It might work out better to sell my place, sell most of my possessions and rent a room for a bit before buying again later in the year.

garymac

They really bug me. The OH and I can get a mortgage of £280,000 according to most websites. Yet I'm sitting here struggling to raise a deposit...