Mortgage amount granted and LTV?

ABBF08291

My partner and I have a combined income of £115k pa. We have good credit histories. We have no loans and our credit card limits are high with <25% current utilisation. We have no dependents, limited outgoings and no financial constraints (eg cars).

According to the very rough approximation of 4x our salary, this translates a maximum of around £460k mortgage amount granted.

I was wondering whether a healthy LTV can help increase the amount we could borrow? Or, are our salaries far more important than the LTV? We are looking to buy in the region of £850k with an available deposit of up to £400k (LTV = 53% assuming max. deposit).

We would be willing to borrow the maximum possibly granted so as to minimise the amount of deposit we need. Could we borrow e.g. £550k? which would mean a LTV of 64%.
Or would this be unlikely given this is too high a multiple of our salary?

Thanks for your input

Verix

I would suggest you probably could borrow about that much given the LTV and how high your incomes are.

kingstreet

Most lenders use LTI caps so they will top-out at 4.75 x income, for example.

At higher LTVs or higher amounts, the LTI cap may be lower.

As an example, Halifax only lends 4 x income where the mortgage amount will be £500k+ regardless of LTV.

I've just tried another lender's LAC and based on combined incomes of £115k, 60% LTV and no credit/dependents etc the output was £500k.

Thrugelmir

ABBF08291 wrote: »

We have good credit histories.

The amount you owe in unsecured credit will have a bearing though. On your salary though the underwriter may well be wondering why such a high utilisation.

amnblog

Technically there are lenders that will go to five times or more but it is unlikely.

The advantage of a low to value is stripped out by the size of the lending.

As I often say to my clients the property you find will dictate the size of the problem. If you find something at £775 you will have a number of options.

If you find something at £875 that you have to have, you will need to find a way to make it happen and that will involve finding additional cash.