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Bigger Mortgage with Bigger Deposit?
mandgreen
Posts: 42 Forumite
My partner and I are struggling to get on the property market as my partner has only been self employed for 3 months so realistically we only have my salary to go on.
I earn £21,500 on a full time permanent contract and have a good credit history and have nothing owing to credit cards or loans. I was previously told with a 5% deposit the maximum I would be given was £86,000. However, thanks to gift of dad I now have an additional £20,000 to add to my deposit so have £25,000 in total. Will this potentially get me a higher mortgage? I would ideally be looking for a mortgage of £100,000 and a house for £125,000 (to avoid stamp duty!!).
I earn £21,500 on a full time permanent contract and have a good credit history and have nothing owing to credit cards or loans. I was previously told with a 5% deposit the maximum I would be given was £86,000. However, thanks to gift of dad I now have an additional £20,000 to add to my deposit so have £25,000 in total. Will this potentially get me a higher mortgage? I would ideally be looking for a mortgage of £100,000 and a house for £125,000 (to avoid stamp duty!!).
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Comments
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Putting extra cash in does not mean you can afford to pay more each month.
If you think about it - why would it?I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Its not a question of affordability as I pay more in rent now than I will on a mortgage plus with my partners income we bring in over £3000 a month. Our problem is getting a bank to give us a mortgage big enough based just on my income! Plus according to online calculators having a larger deposit means a better interest rate anyway so will bring the monthly payments down than if i only had a 5% deposit.0
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It is not about how much rent you pay today and what mortgage payments will be tomorrow.
It is about what the Lender has submitted to the regulator in terms of how they will decide what they will lend given your circumstances.
This is a regulated industry. The Lender cannot say 'you are paying more than that now so we have nothing to worry about'.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
You cannot use your partners income so cannot use it to prove affordability. With £25k deposit you can get a £75k mortgage with good interest rates £100k available in total for a property on your salary.0
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There are lenders whole will offer upto £107,500 subject to outgoings, such as dependents, childcare, maintenance, ground rent/service charge etc.
Speak to an independent broker who will be able to produce a personalised affordability plan and establish the best lender/product for you.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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