Advice on borrowing amount?

Daisydoop

Hi, sorry I see alot of these how much can I borrow questions but just looking for a few answers to my questions.
We are hoping to move house next year and I've become addicted to working out figures etc. (to an extent without knowing how much our house will sell for or knowing what we will buy) but the amount we can borrow will obviously make a big difference.

Firstly, I have been on a couple of the intermediaries webpages and put in our details for a rough guide, we will look to get a broker on the case next year but are these figures accurate? One or 2 of them the figure doesn't change when I take out my loan figure, we pay £150 a month for my car but that doesn't seem to make a difference?

Also are there some lenders that will lend more than others, maybe not high street bank type lenders? Or are they all roughly the same? I think we'll need roughly 4.3x our joint salary on a 90% mortgage.

And lastly, we have good credit histories not even a late payment on either of our files. Would an AIP figure be accurate to what might be offered? Not sure how it works? With an AIP figure could you go and offer that full amount on a property or do people generally aim to sit below that incase the final offer of mortgage isn't as much? If you see what I mean?

Any advice would be gratefully received

amnblog

Daisydoop wrote: »

Firstly, I have been on a couple of the intermediaries webpages and put in our details for a rough guide, we will look to get a broker on the case next year but are these figures accurate?

Only if you complete them correctly and don't miss anything (unlikely for a borrower)

Daisydoop wrote: »

One or 2 of them the figure doesn't change when I take out my loan figure, we pay £150 a month for my car but that doesn't seem to make a difference?

Your maximum lending is being limited by multiples of income rather than affordability - that may not make much sense to you, but that is why

Daisydoop wrote: »

Also are there some lenders that will lend more than others, maybe not high street bank type lenders? Or are they all roughly the same?

They all lend different amounts

Daisydoop wrote: »

I think we'll need roughly 4.3x our joint salary on a 90% mortgage.

Some, not all, will get in that range

Daisydoop wrote: »

And lastly, we have good credit histories not even a late payment on either of our files. Would an AIP figure be accurate to what might be offered?

Yes it should

Daisydoop wrote: »

Not sure how it works? With an AIP figure could you go and offer that full amount on a property or do people generally aim to sit below that incase the final offer of mortgage isn't as much? If you see what I mean?

Not worth getting an AIP until you find a property you want to offer on.

Daisydoop wrote: »

Any advice would be gratefully received

Advice is engage a broker

kingstreet

If you enter the data correctly and fit the lender's criteria, the affordability output and agreement in principle figures should match, telling you what you can borrow.

You add your "deposit" to that and you have your maximum purchase price.

Daisydoop

Thanks very much to both of you!

So does that mean that for some lenders the loan won't make a difference at all to the amount they will lend us?
We would surely need an AIP so that we know what figure is possible as it will affect which homes we view/offer on? If we can't get as much as we hoped then we would go a step down?

amnblog

Daisydoop wrote: »

Thanks very much to both of you!

So does that mean that for some lenders the loan won't make a difference at all to the amount they will lend us?

Sounds like it

Daisydoop wrote: »

We would surely need an AIP so that we know what figure is possible as it will affect which homes we view/offer on? If we can't get as much as we hoped then we would go a step down?

You don't need an AIP you need a broker.

Daisydoop

We'll definitely get a broker as I think we will be looking at getting maximum borrowing so will need someone that knows the whole market. Thanks very much.

kingstreet

You can find if you use a lender which has a loan to income cap at your loan to value, a credit commitment may make no difference to the amount you can borrow.

However, normally you will find a monthly loan payment will mean you can borrow less.

A decent broker will find the best lender, best terms/rates for you and get you the amount you need to borrow, within reason.