Advice from our resident brokers please

Avicov

Ok so going back to my original criteria and circumstances. Does having a large deposit (£300k) in my case help with getting a larger mortgage amount? Does it come into play. I understand the main thing is the affordability checks. But does a larger deposit give the underwriter a bit more confidence in providing a larger mortgage?

Landofwood

Avicov wrote: »

That's interesting to know. They must have done some calculation on the extra commission you get.

Did you go direct with Natwest?

I used a broker. Natwest consider 100% of commission towards lending calculations. They requested my p60 and large amounts of payslips and bank statements.

ACG

Having a larger deposit may help slightly but ultimately your income is only going to support a mortgage of a certain size.

Dont forget rates are at an all time low.

Mortgage_Mark_2

Halifax limit to 4x or £500k, whichever is higher, for loans of £500k+.

You won't get this with a 'known' lender, you're looking for 5.3x joint incomes, without factoring in the credit agreements - you say £300 monthly card payment, what is the ongoing balance? Lenders will take a set %age of balance, rather than whatever your actual payment is.

Avicov

Mortgage_Mark wrote: »

Halifax limit to 4x or £500k, whichever is higher, for loans of £500k+.

You won't get this with a 'known' lender, you're looking for 5.3x joint incomes, without factoring in the credit agreements - you say £300 monthly card payment, what is the ongoing balance? Lenders will take a set %age of balance, rather than whatever your actual payment is.

So with Halifax I could possibly get £500k on our current income? As x4 on our income requirements stated in my original post wouldn't take us above £500k. So to get £500k that would be about x5.

credit card has balance of around £15k. I do wonder if it is better to pay this off when I sell our house. Can this figure be ignored if I say it will be paid using the equity of the house sale?

Does our PCP on the car have a big impact on mortgage amount offered? I plan to hand the car back in 12 months time.

kingstreet

A card balance of £15k will see many lenders use 5% of the balance,or £750 a month as the cost, not the £300 you stated in the opening post.

Noting it to be repaid on or before completion will see it ignored by some, but not all lenders.

Mortgage_Mark_2

Avicov wrote: »

So with Halifax I could possibly get £500k on our current income? As x4 on our income requirements stated in my original post wouldn't take us above £500k. So to get £500k that would be about x5.

credit card has balance of around £15k. I do wonder if it is better to pay this off when I sell our house. Can this figure be ignored if I say it will be paid using the equity of the house sale?

Does our PCP on the car have a big impact on mortgage amount offered? I plan to hand the car back in 12 months time.

As a (very) crude estimate, take your monthly payment, x12 and then deduct from 'income', that's the way the lender will assess for affordability. It's clearly far more detailed than that but this is the easiest way to look at it.

Ditto 5% of CC balance.

So, deduct £4,560 for the car, and £9,000 for the CC balance, and your joint income is sitting at around £90,000, meaning you'd probably struggle to borrow more than about £450k.

This will, of course, also depend on credit score.

Avicov

Mortgage_Mark wrote: »

As a (very) crude estimate, take your monthly payment, x12 and then deduct from 'income', that's the way the lender will assess for affordability. It's clearly far more detailed than that but this is the easiest way to look at it.

Ditto 5% of CC balance.

So, deduct £4,560 for the car, and £9,000 for the CC balance, and your joint income is sitting at around £90,000, meaning you'd probably struggle to borrow more than about £450k.

This will, of course, also depend on credit score.

So on the credit card alone I am losing £45k off the mortgage amount I could possibly get?

So it's better to clear the £15k to get another £30k... if you see what I mean?

Mortgage_Mark_2

Avicov wrote: »

So on the credit card alone I am losing £45k off the mortgage amount I could possibly get?

So it's better to clear the £15k to get another £30k... if you see what I mean?

Yes. Definitely. ('yes' is not enough characters)

GMS

Clearing the credit commitments may help your maximum borrowing. However reducing your deposit may increase your LTV banding and rate.

Why not speak to a broker? They could explore the options for you