MIP - Advice on maximum loan amount

MrJB

Hi all, firstly many thanks for your time and assistance today.

Really after some advice, I've had an AIP for 3 months on a new build property, which has been delayed and delayed - sellers will not take a reservation until 6 months prior to completion - exchanging within 28 days of reservation. When we looked at the property we were buying it with 5% deposit and 10% help to buy. Our AIP came in at just under 180k. At the time of our AIP, our broker said that we had some wriggle room in our lending criteria. Broker is whole of the market and recommended Nationwide at the time.

Subsequent to all of this my partner has now started work as a Nurse, on our original application it was on the basis that she had a contract to commence working and the figure used was the minimum for the banding which was £21,600. In reality with enhancements her annual salary is £25,000. I work as a surveyor and earn circa £28,000 but in addition have a company car which includes private mileage so have no travel expenses. We have no borrowing whatsoever, including no overdrafts. I have a credit card with a zero balance.

We've found another property which we actually prefer - similarly new build, priced at 270k, we again would be looking for a 10% equity loan in addition to our 5% mortgage. ie we would be funding £230k by way of a mortgage. Do you guys think that £230k is a realistic prospect based on our joint income of £53,000? I've used the online calculators which suggest we'd be looking at up to 250k, but reluctant to go for an AIP through nationwide if we get rejected. I've asked the broker about this a couple of times and he's now ignoring me (I suspect he thinks I'm wasting his time!).

I appreciate this maybe a situation of discussing it with our broker, but wondered if you guys could give me your pearls of wisdom as to whether you think it's a good idea!

P.s - just realised I called the title MIP when I meant AIP. Apologies.

Verix

First off AIP and MIP are the same thing so no need to apologise.

£230k does look potentially affordable for you, just be aware that as you are looking at 85% LTV with Help to Buy your lender choice is somewhat limited. You've already hit the nail on the head in that your best bet is speaking to your adviser if you can get hold of him.