Mortgage amount and house purchase price

stanmoor

Hi guys

After a bit of advice. We've just got a decision in principal for £350,000, and it said the maximum affordability amount would be £353,000.

What I want to know is, if I've got a deposit of £50k (after stamp duty), is it sensible to look at houses worth £400k? Or would it be 'safer' to look at houses worth £370k, in case the bank decides to lend us a smaller amount?

I haven't had any defaults on my cc, always pay on time etc, so can't see credit rating being bad. However, I don't want to make an offer of £400k and later find out the bank won't lend this much.

Thanks.

lee111s

Is it worth stretching yourself to the absolute limit is the question you should be asking.

getmore4less

stanmoor wrote: »

Hi guys

After a bit of advice. We've just got a decision in principal for £350,000, and it said the maximum affordability amount would be £353,000.
.

I would be working out what I consider affordable(not the lenders idea of it), if this turns out to be less than the lender adjust my expectations.

stanmoor

Well, on the repayment calculator for £350,000, it shows a monthly repayment amount that is currently less than what me and my girlfriend are paying at the moment for rent. We would also be planning on looking at 3 bed flats/houses and renting out 2 beds for some extra income. Therefore, I don't see it being a huge issue.

So is it realistic to expect that the bank will actually lend close to the DIP if everything is as we say it is?

ethank

The lender will not take into account any room income, and you should think whether you really want permanent lodgers in your new home.

My mantra has always been buy the best home I can afford in the best location.

My first place I bought right at the top of my affordability!