Borrowing lending limits

Danniella

Hi all,

Received a call today from Natwest (our bank) stating the maximum amount they would be willing to lend. Its little less than what we need.

I am pretty sure their lending criteria is 4 x income. Are there any lenders who do more than 4 that we may be able to approach.

Many thanks

amnblog

You are wrong. It does not work like that. Both incomes and outgoings are considered.

Nat West are generally quite generous but a broker is your best bet if you are tight on affordability.

Thrugelmir

Danniella wrote: »

I am pretty sure their lending criteria is 4 x income.

They'll offer what they consider is affordable. The systems are a little more sophisticated than straight multiples these days.

Danniella

Many thanks for your replies.

Would i be better off using a broker if we need a little more than 4 x and if so, what does the average broker charge? (Never used one before).

Or alternatively is it a waste of time and we will just have to save some more?

Thank you

amnblog

Brokers are always a good bet if your situation is tricky.


Brokers fees on the market are generally 0 to £999 depending on the broker and the complexity of the case.

Danniella

Hi there,

Many thanks for your replies.

I have done a calculation on Santander's website (I did have to answer more questions than those on the Natwest calculator) but the outcome is that they will lend us "that little bit more that we need" than Natwest have offered us. So that's good.

The rates are slightly higher but we could fix for 2 years and then move the mortgage to a different lender with a better rate.

My question is now this........

Will I still now need a broker to sort this out?
Our credit files are clear, we have about £2k outstanding on a credit card but apart from that, I cannot see why we would now need a broker.

I may be wrong (haven't used one before) - it may well be that we still need a broker but I don't know for sure.

Advice please.

Many thanks

amnblog

Brokers are always a good bet if your situation is tricky. A tight budget is a tricky case.

I posted on the forum last week on the risk of borrowers relying on online affordability calculators.

Santander are one of the least likely lenders to provide a 'smooth ride'.