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Who would lend me the most?
deejbk01
Posts: 80 Forumite
Are there any mortgage lenders that will give offer bigger mortgages to responsible money savers, people like us?
Failing that are there any lenders that are less “responsible” and give large mortgages to those to whom others wouldn’t?
I’m an excellent money saver, have read Martin’s Mortgage guide as well as doing extensive research of my own, I have a budget and stick to the budget very strictly and manage all financial matters with care and diligence. And yet buying a property in London within cycling distance of my job in central seems an impossibility. Despite having a basic salary of £45k with regular overtime coming in at £500+ per month, and my dad paying me £200 per month as maintenance towards saving/future mortgage, I am unable to find any lender that will give me a decision in principle (DIP) for more than a measly 235k. Having done extensive calculations I can see that I could easily manage a 260k mortgage even if the interest rates increase by a whole point and be comfortable even with a 250k mortgage even should the interest rates increase 2 points. In fact making suitable cuts I could manage a 250k mortgage even with a massive 5 point jump, I am confident I could put in the necessary cuts in my budget and find the extra income to manage still. And all that’s assuming no pay rises (which is extremely conservative, as there a good chance of yearly payrises at my company).
I’m currently 15k short of being able to purchase a property and I have been approximately 15k short of buying a property for the last 5 years. I’m currently saving about 1k per month living in a cheap Guardians property where receiving post is a joke and the showers are so bad that I have to shower at work or the gym, but even if I wanted to wait another 15 months, chances are either, asking prices would have increased, and/or the amount I can borrow decreased by the same amount: the rate at which I save is the rate at which it escapes me. This time last year I was able to obtain a 245k DIP but didn’t have as much saved for a deposit as now.
So Nationwide offer me DIP at 235k
London and Country DIP, 218k
Having used other major companies’ calculators I can’t see any that would offer DIP close to 235k and obviously I don’t wanna apply for loads of DIPs and have all those footprints all over my credit file
There must be lender somewhere out there who can give a DIP for 250k…
Failing that are there any lenders that are less “responsible” and give large mortgages to those to whom others wouldn’t?
I’m an excellent money saver, have read Martin’s Mortgage guide as well as doing extensive research of my own, I have a budget and stick to the budget very strictly and manage all financial matters with care and diligence. And yet buying a property in London within cycling distance of my job in central seems an impossibility. Despite having a basic salary of £45k with regular overtime coming in at £500+ per month, and my dad paying me £200 per month as maintenance towards saving/future mortgage, I am unable to find any lender that will give me a decision in principle (DIP) for more than a measly 235k. Having done extensive calculations I can see that I could easily manage a 260k mortgage even if the interest rates increase by a whole point and be comfortable even with a 250k mortgage even should the interest rates increase 2 points. In fact making suitable cuts I could manage a 250k mortgage even with a massive 5 point jump, I am confident I could put in the necessary cuts in my budget and find the extra income to manage still. And all that’s assuming no pay rises (which is extremely conservative, as there a good chance of yearly payrises at my company).
I’m currently 15k short of being able to purchase a property and I have been approximately 15k short of buying a property for the last 5 years. I’m currently saving about 1k per month living in a cheap Guardians property where receiving post is a joke and the showers are so bad that I have to shower at work or the gym, but even if I wanted to wait another 15 months, chances are either, asking prices would have increased, and/or the amount I can borrow decreased by the same amount: the rate at which I save is the rate at which it escapes me. This time last year I was able to obtain a 245k DIP but didn’t have as much saved for a deposit as now.
So Nationwide offer me DIP at 235k
London and Country DIP, 218k
Having used other major companies’ calculators I can’t see any that would offer DIP close to 235k and obviously I don’t wanna apply for loads of DIPs and have all those footprints all over my credit file
There must be lender somewhere out there who can give a DIP for 250k…
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Comments
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nationwide are one of the better lenders for affordability.
Noone will take account of your £200 "maintenance" that your father pays you.
What is your deposit and what term are you looking at?I am a Mortgage & Protection Broker
MSE doesn't check my status so you have to take my word for it. Any information posted is for discussion only and should not be seen as advice. I am FCA Registered, registration details available on request.0 -
Rules are there for a reason, to stop people lending way above what they can afford.
Rules are the same for everyone from someone earning 20k to 200k.
FYI they see if you can afford more than 3% above their rates at least, sometimes going up to 4%, not a measly 1% for their stress tests.
It's no longer just a multiplication of your salary but also affordability, current loans, commitments e.t.c.
Also how you look to a lender. If you have minimal deposit, you are a higher risk and therefore your rates will be a lot higher than say someone who has a 40% deposit.
https://www.the-fca.org.uk/firms/interest-rate-stress-test
On a side note, doing multiple DIP's hurts your credit file in the space of a year"It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP0 -
I thought the stress test is for 7%0
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We have a graph on our website showing how generous sixteen mainstream lenders are on affordability.
Let me know if you would like a link to it, as I cannot put it on the Forum.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
We have a graph on our website showing how generous sixteen mainstream lenders are on affordability.
Let me know if you would like a link to it, as I cannot put it on the Forum.
Could I get a link to this so I can check for myself, I like quirky tools like this.I am a Mortgage & Protection Broker
MSE doesn't check my status so you have to take my word for it. Any information posted is for discussion only and should not be seen as advice. I am FCA Registered, registration details available on request.0 -
If you're trade, I need to charge you.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
hi, please can you send me a link to this?0
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amnblog, could you please send me a link - currently looking at mortgages and would be helpful to have something in one place - HSBC seem to be the highest lenders that I've seen at the moment, although the difference across what I've looked at so far is vast!0
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Can you send me this link please, thank you!0
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please could I have this link also? Thank you0
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