Just how much can I actually borrow?

scottishgirl87

To cut a long story short we sold our flat back in September 2017 and have been living with my parents while we look for a house. The market is crazy in our area just now (very little on the market and those that are are in high demand) and we’ve so far been outbid on 2 properties. I’ve spoken to London & Country as we used them when buying our flat and they have given us a decision in principle, however, I’ve found various online calculators are estimating we could get approximately £20k more than L&C say we can.

We have a £50k deposit and have been basing our offers on the DIP from L&C, however, any extra money we could get could result in us not being outbid in the future. What is my best plan of action? We both have a credit score of 999 on Experian so should I try and get a DIP from 1-2 of the lenders who are quoting a higher borrowing figure?? I know the figure is not guaranteed and I don’t want to damage our credit rating either by doing multiple searches but I’d also really like to know if the higher amount is realistic.

kingstreet

L&C don't normally do 'proper' DIPs they just do affordability calculators.

Any lenders mentioned?

Who do you think will lend most? Are you basing affordability on any credit being paid off, on or before completion?

juniordoc

Is it wise to borrow right up to the limit of your affordability?
If you are living with parents are you managing to put a decent amount in savings each month and build up your deposit?

scottishgirl87

kingstreet wrote: »

L&C don't normally do 'proper' DIPs they just do affordability calculators.

Any lenders mentioned?

Who do you think will lend most? Are you basing affordability on any credit being paid off, on or before completion?

No lenders mentioned and we don’t have any debts. Should I try a local broker instead? 2 companies that have indicated more are Halifax (who our previous mortgage was with and we both bank with Bank of Scotland) and Virgin Money (where we’re currently saving our £50k).

juniordoc wrote: »

Is it wise to borrow right up to the limit of your affordability?
If you are living with parents are you managing to put a decent amount in savings each month and build up your deposit?

Unfortunately, it looks like we’ll have to as we’re constantly being priced out due to supply and demand. Having a look at mortgage costs on the maximum, our monthly cost would be less than our first mortgage on our flat and we were both earning less then too so know it’s doable.