Mortgage loan amount variations with size of deposit

Jaybee83

Hello,

I'm new here so apologies if this has been posted up already. My query is, does anyone know if the amount a mortgage lender would front you would increase inline with your deposit?

Say for example a provider would lend you £100k on an income of £25k pa and a &10k deposit (a straight four times annual income)....

If the deposit was disproportionately larger at say £100k, would a lender go beyond the £100k They offered before on the same income but much smaller deposit? Assume the income stays at £25k.

Is the loan amount always capped by the applicants income or dows the size of the deposit affect this (hopefully increase it with the added security it provides) and if so is there a calculator someplace where I can try and work this out?

All of the calculators I've come across so far provide a static answer after the income has been entered but don't take a deposit into consideration.

Just wondering if anyone may be able to help?

Many thanks

jezzer_72

Not in my experience. Your deposit tends to either reduce the term of the mortgage and/or reduce the interest rate. My income has increased by 2 since i went to a mortgage advisor in 2013 and they will only lend me 20k more than they would then.

Jaybee83

Thanks, this is worth knowing. Appreciate you getting back so quickly ����

getmore4less

Affordability does not change with bigger deposits other than having slightly more disposable income from a lower rate.