Stupid deposit and mortgage calculator question

NRAMageddon

Hi all,

I have a really stupid question.

I am looking at applying for a 90% mortgage with a property value around the £300,000+ area. I have been using a variety of mortgage calculators to work out how much I can borrow. So, when a mortgage calculator states "you can borrow up to £300,000" does that figure include the 10% deposit that I have specified is available to me?

In the above example, to buy a house, will I have...
1. £300,000 (including 10% deposit)
2. £330,000 (including 10% deposit)

Many thanks,

Thrugelmir

Does the calculator ask how much deposit your are intending to put down? If not it's more than likely one based on affordability, i.e. how much you could potentially borrow. Though this is subject to the lenders policies and criteria. Along with the actual product that you may wish to apply for.

kingstreet

The word 'borrow' is the giveaway.

That is talking about the mortgage, as that is what you borrow.

If it said you can 'buy' for a certain amount it would be adding your borrowing power and your deposit together and making a maximum purchase price...

MK__2

As kingstreet says above - they will lend you what you need to borrow. The price of house you can afford = what you can borrow + your deposit

Something to note though - Don't take the calculators as gospel, it's only an indication of what they might be able to lend you. When they look at your credit file, everything can change.

When I bought my current house, I had no bad credit at all. No mortgage, no loans, no cards, nothing. But I also had no good credit history (due to no loans, no cards, no previous mortgage..). So all of those "we will lend you £xxx amounts" on the calculators suddenly went out of the window, and lots of the mortgage products were not available to me, because lots of lenders wont touch you unless you've got a decent credit file.

kingstreet

Affordability calculators on the intermediary sites are quite reliable. They do have to be correctly completed though.

NRAMageddon

Excellent news. Big thanks to all for the info.