How much can we borrow? - Agreement in Principle?

DJSINGH

Hello,


Me and my fiancee are looking to buy a house around the end of the year.
We have used the online calculators offered by numerous websites, including banks, and receive information that we can borrow more than we require.

Actually we require around 290k, but these websites (including Nationwide/Barclays) say we could get up to 340k, subject to further checks of course.


What would be the best way to get a more exact figure on how much we can borrow?
Such that we can definitely look at houses within our price range?
Do we need to apply for an agreement in principle, to get this more exact figure?
If so, what is the best way? To do it through a bank like Nationwide? Or should we be going to a broker or is there some website that can get the best AIP from a range of different lenders?


Thanks in advance


P.S. Incase it helps
Deposit = 70k
Approx price of house wanted = 360k
Mortgage required = 290k

jennhg88

Speak to an independent broker who can take all your details into account and give you a more accurate answer.

sal_III

The best way to be sure how much you can borrow is indeed to apply for and obtain AIP. You have to do that sooner rather than later anyway, as it's a requirement to place an offer or reservation in almost all cases.

If this is your first time, I strongly recommend using a broker for the mortgage. Even if there is a fee involved (there are no-fee brokers too) it's more than likely to be less than the savings from getting the best offer for your circumstances.

bigstevex

DJSINGH wrote: »

Hello,


Me and my fiancee are looking to buy a house around the end of the year.
We have used the online calculators offered by numerous websites, including banks, and receive information that we can borrow more than we require.

Actually we require around 290k, but these websites (including Nationwide/Barclays) say we could get up to 340k, subject to further checks of course.


What would be the best way to get a more exact figure on how much we can borrow?
Such that we can definitely look at houses within our price range?
Do we need to apply for an agreement in principle, to get this more exact figure?
If so, what is the best way? To do it through a bank like Nationwide? Or should we be going to a broker or is there some website that can get the best AIP from a range of different lenders?


Thanks in advance


P.S. Incase it helps
Deposit = 70k
Approx price of house wanted = 360k
Mortgage required = 290k

4.5-4.75 X your combined salary is a good idea of what you will get as long as you have no adverse credit, but also existing debt, childcare costs etc will reduce this put simply

DJSINGH

Hello all,

Many thanks for your repsonses.
We do plan to use a broker for the mortgage. Do you recommend the broker is based near to where we will buy/live? Or could they be anywhere, like where we each live presently?

Sounds like we should apply for the AIP for the definite figure, so if we should use a broker to do so, then advice to my above point would be helpful please!

jaelato1

Personally, I'd get a local independent no-fee broker around where I live. In terms of AIP, you should already know roughly the cost of the house you want to purchase including your deposit

Your broker should be able to tell you how much you can borrow then you apply for AIP.

jonnygee2

Do you recommend the broker is based near to where we will buy/live?

Makes no difference unless you want to see them in person for some reason. Mostly, it's just phone / email (even if they are close). Mine was other side of the country, but they were amazing.

Just choose someone who doesn't charge a fee. Still plenty of them out there.

DJSINGH

Thanks for the views. I'll look for recommendations on local brokers before venturing for a remote one.
One more curious question, as I cant find anything online.
When we have to show our bank statements, are we allowed to just show our joint account that demonstrates how we are paying £3k into it monthly.
Or are we required to show our personal accounts too, which shows our spending?

kingstreet

All of em.

Typically three months statements to evidence the three months net payments visible on your payslips and evidence of your deposit if in a separate account.

DJSINGH

That makes sense! Thanks!

YHM

I expect the majority of brokers would be happy to support on a fee free basis for a mortgage of that size, so just make sure you find a reputable one!