Varying mortgage offers

Panda78

I'm a FTB, with a good income and deposit of between 30-35%, although i am buying in London, so those figures don't actually mean much!

I'm confused by the difference in what i could borrow from various lenders. Going by the mortgage calculators, this is what i could potentially borrow;

Barclays £150K, HSBS £178K, Halifax £174K, Nationwide £180K.

Is there any reason why Barclays is much lower and should i be wary of going with any of these lenders? - i know about the conveyancing issues with HSBC.

Grateful for any advice please.

Dave_Ham

You must have filled in some of these slightly incorrectly.

Nationwide are one of the least flexible on income multiples and Halifax and Woolwich are usually more flexible.

Lenders typically will not go above 5 * income multiple and some include commission, bonus, overtime, benefits and some do not. They then take off commitments and will lend a figure accordingly.

Sometimes this is limited by the age of the applicant, dependents and/or pre existing financial arrangements.

If you want to provide approx. income and expenditire will be able to give you a better idea.

Panda78

Thanks Dave, my annual salary before tax is £34,680 and i always get a bonus of at least one month, so £2,890 = total salary £37,570

I have no dependants, loans and am buying by myself. Credit card balance is zero.

My deposit is £80K. (Looking at properties between £230-250K).

(Edited total salary figure).

Dave_Ham

Most welcome..

You should be fine then. Subject to credit score, you should achieve a mortgage of £175,000-£180,000 in addition to your deposit, but do remember to budget for the associated costs in stamp duty, solicitors fees, valuation fee, possibly application fee and/or mortgage brokerage fees...

You will need to be a bit careful in lender selection as typically the best buy rates of HSBC for example are unlikely to lend you enough, depending obviously on your end purchase price figure..

All the best

Panda78

Thanks for your time, Dave, appreciate you checking. I will need to weigh up the monthly repayments but it seems as though Barclays are being very cautious with the lending figure.

Wh05apk

As Dave has said, Woolwich are normally one of the most generous lenders, so I suspect you may have mis-keyed the info into their calculator, try again and see what comes up.

Panda78

Wh05apk wrote: »

As Dave has said, Woolwich are normally one of the most generous lenders, so I suspect you may have mis-keyed the info into their calculator, try again and see what comes up.

Thanks, i did double check, but got the same figure. I spoke to the Woolwich briefly over the phone and they said as a rule, they would only offer 4x my salary, which would take me to approx £150K. I think the other lenders are more willing to consider the fact that i have a large deposit and no loans, dependents etc. Perhaps if i went into a branch and discussed in more detail, i would get a better offer.

Dave_Ham

Panda78 wrote: »

Thanks, i did double check, but got the same figure. I spoke to the Woolwich briefly over the phone and they said as a rule, they would only offer 4x my salary, which would take me to approx £150K. I think the other lenders are more willing to consider the fact that i have a large deposit and no loans, dependents etc. Perhaps if i went into a branch and discussed in more detail, i would get a better offer.

Depends upon credit score, it can go to 5 times. Unless they have changed their policy in the last 48 hours or if they have different multiples going directly which I cannot imagine.

Do not believe anything they infer in branches as remember they only have one product and are sometimes managed on applications and therefore nothing for them to lose in chancing their arm trying to get you a mortgage.

Good luck