Mortage how much can we borrow??

nickyg2000

Hello,

Having had 3 house purchases fall through after being gazumped, under valued etc we how have decided that we want to find a forever house and stretch ourselves so we don't have to move again for a long long time.

The question is we will be moving into rented shortly after selling our flat (new address) and now have 3 hard searches on our credit file from previous mortgage applications on houses purchases that fell through. We earn £45,500 as a joint salary, no debt, no commitments, no dependents and just £25 student loan each month. We have £130,000 to put down as a deposit. Realistically whats the max we can borrow?

Any help and advice much appreciated...

LeoTLion

Are you using a broker? If so they should be able to provide this info for you.

If not, try playing with you figures in one of the mortgage intermediaries web sites to give you an idea of the max loan you could get.

http://www.woolwichintermediaries.co.uk use the residential affordability calculator.

You can Google other lenders sites to find what others would lend as it varies.

It's hard to say what effect three searches in quick succession will have, but given the circumstances I would think you can give a plausible explanation if asked.

dustywarrior

Firstly, that's a very nice deposit you've got there!

Second, going on the typical banks lending criteria id say you could get a mortgage for anything between £150,000 and £200,000.

What kind of price range did you have in mind for your house?

nickyg2000

Thanks,
We want to borrow £200k plus ideally. £200k may get us the place we want...

nickyg2000

So house price £330k/ £335k

dustywarrior

You would probably be on the upper limit but it's definetly achieveable. I would find yourself a good broker in your area and explain your situation, they will know the best lenders to try since certain lenders would probably flat out refuse to lend that high an amount.

andyfromotley

why dont you just use some of the affordability clculators? There are tons out there and they are pretty easy to find.

check out the Nationwide website under the mprtgage section for a start,

nickyg2000

Just want to know if they are realistic figures given they say we may lend up to. The cals dont tell you much i.e will my address change and 3 hard credit searches affect how much they lend??

Thrugelmir

nickyg2000 wrote: »

Just want to know if they are realistic figures given they say we may lend up to.

You need to be realistic with yourselves as well. As to how much of your income you want to spend on repaying debt. Interest rate rises will impact you more the larger the debt you owe.