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Deposit saving advice

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  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    JSR wrote: »
    If this is true of any lender it is not universally true. The only effect my loan had on my mortgage application was to reduce the total amount I could borrow based on the repayment not the amount owed. A £100 per month loan would have reduced my maximum borrowing by 100 * 12 * 3.75 = £4,500. Having £5,000 less in savings would have reduced it by about £45,000 on a 90% mortgage. If the OP is willing to wait then they should take the lowest cost route, if they just want to get on in life then they should reduce the amount the debt costs on a monthly basis and start building a deposit as soon as possible.

    Agreed. Not saying its always the case. But if a lender is receiving more applications than it can handle or current policy is to reduce risk on new business. Then this would be a way of quickly filtering out applications.
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