Mortgage Confusion.

Niklas33

Good Morning.

Myself and my Partner have recently left Exeter, and moved in with my parents in the outskirts of Nottinghamshire (We both have graduate jobs paying £23,000 for myself and - £25000 for him)

We've been living in Exeter for the last 2 years paying £700pcm

We've contacted a few mortgage offering banks and been given conflicting information.

Nationwide will give us a mortgage of £211,000 over 40 years.
HSBC Will give us £141,000 over 40 years
Lloyds will give us £129,000 over 40 years

All of our income and outgoings have been included, in their calculations and we've been given conflicting offers.

We have no debt and fantastic credit scores.

We have yearly travel costs of £289 each to use the buses in the city.
And we don't pay rent to live at my parents we just pay for the odd food shop
Both of our phones we bought outright and are on pay as you go

Can somebody please advise why we have been receiving these conflicting offers?

Edi81

Risk appetite of the lenders.
Get yourself an independent broker if you want to maximise how much you want to borrow.

Thrugelmir

Why a 40 year term?

Sibz

I assume that these are maximum figures that each lender will lend and the period over which it will do so.

Really depends on how you meet each lenders lending criteria.
Some rules of thumb for max figures are: up to 4.5x single salary, or up to 3.5x joint salary (for couples)... Some lenders also have a LTV threshold that you would need to meet (ie a minimum deposit amount for a property) - this will further affect the max lending figure.

What you currently do or do not pay for rent will be irrelevant as it would not be of consequence when you have the mortgage. Income and outgoings, credit ratings and scores will only affect your affordability and likelihood of being accepted - they do not (usually) over-ride the standard lending criteria governing their max lending figures.

LRmortgage

Different banks offer different amounts.
There is not set “formula” for affordability, each bank will have their own calculation for what they are willing to lend.

See a broker if you want to maximise your lending amount.

ACG

Every lender is different.
I have seen a lender offer over £200k to a customer and another lender offer less than £25k for the same customer.

Different lenders have different criteria and different affordability models.

Niklas33

Thanks for the responses.

I'll be seeking a broker to help us in the process.

Cheers!