Additional loan declined, surprised by figures

ijrwe

In 2013 I earned around £15k and was offered to borrow £75k.

I took £40k of that, and today I enquired about borrowing more but was told I wasn't able to, based on my low income (the same as before). I have a mortgage of around 35% LTV.

The advisor kindly put in some specimen figures for me and even at a £20k salary I would not be eligible. At £30k, I would have been permitted to borrow the remaining £35k.

I was surprised by this, expecting that I would be allowed to borrow up to what I was originally offered, especially since the lender is still offering roughly that sum for first mortgages, based on my salary (in their online calculators and so on).


Is this normally the case, that your initial mortgage offering is much higher than what any subsequent lending would provide? Is there any other means of getting some more money out of the property without selling it, or is my only option with my current lender?

Thanks

Thrugelmir

The rules changed in April 2014. Regulation was introduced to stop lenders offering unaffordable amounts to borrowers.