Am I stupid even trying?

mortgagetakingages

Carl2510 said:

bazzyb said:

Carl2510 said:

Windofchange said:

Have you or your advisor scoured the market? When we were applying, there was a near £100k difference in what the worst lender for us would lend us as compared to what the best lender would lend to us. Banks have different criteria, and one may be more than happy to lend you the full amount as opposed to another who will say jog on. 

He’s currently on leave but I will ask him see what he thinks and to have a look at the market and see if he thinks it’s achievable I just didnt think banks would even loan you so close to the amount you want I thought they’d at least want it a good few 10/20K under your max amount you can borrow.

This doesn’t make any sense. If you can borrow a maximum of £193k, then you can borrow £193k. If you could borrow £20k less than they would have advised your maximum is £173k. 

Maximum means maximum, it shouldn’t just be a random guess if that’s what you’re implying?

Hi thanks for your reply, I was under the impression there would be scrutiny from the underwriter if we was trying to get the absolute maximum we can borrow which give more chance of being rejected.

The affordability already does that. So long as you have been honest and they are not huge additional costs that would being the affordability down you should be fine. 

Carl2510

mortgagetakingages said:

Carl2510 said:

bazzyb said:

Carl2510 said:

Windofchange said:

Have you or your advisor scoured the market? When we were applying, there was a near £100k difference in what the worst lender for us would lend us as compared to what the best lender would lend to us. Banks have different criteria, and one may be more than happy to lend you the full amount as opposed to another who will say jog on. 

He’s currently on leave but I will ask him see what he thinks and to have a look at the market and see if he thinks it’s achievable I just didnt think banks would even loan you so close to the amount you want I thought they’d at least want it a good few 10/20K under your max amount you can borrow.

This doesn’t make any sense. If you can borrow a maximum of £193k, then you can borrow £193k. If you could borrow £20k less than they would have advised your maximum is £173k. 

Maximum means maximum, it shouldn’t just be a random guess if that’s what you’re implying?

Hi thanks for your reply, I was under the impression there would be scrutiny from the underwriter if we was trying to get the absolute maximum we can borrow which give more chance of being rejected.

The affordability already does that. So long as you have been honest and they are not huge additional costs that would being the affordability down you should be fine. 

Ok thank you.

getmore4less

Forget what they will lend you as long as it is more than you need.
Work out what you can afford.
£40,500 income will be net £2,500-£2,900
£188k 5y fix <2%   £300pm is interest decide how fast you want to pay down the debt(savings)
20y £960pm
25y £800pm
30y £700pm
35y £630pm
40y £570pm
(longer term and overpay is better than shorter term more flexibility)
Are you renting now?  how much is that?
How much do you save every month?

Carl2510

getmore4less said:

Forget what they will lend you as long as it is more than you need.
Work out what you can afford.
£40,500 income will be net £2,500-£2,900
£188k 5y fix <2%   £300pm is interest decide how fast you want to pay down the debt(savings)
20y £960pm
25y £800pm
30y £700pm
35y £630pm
40y £570pm
(longer term and overpay is better than shorter term more flexibility)
Are you renting now?  how much is that?
How much do you save every month?

Currently in the process of selling my house, at the moment I save £250 a month into shares that mature next year £9K guaranteed but possibility of more if share price is good. 3 year maturity if it was this year I’d of got 20K back. Currently between me and my partner we will have 80K in savings when I sell my house that’s without the share money. 

She currently lives with parents so saving £1K a month and I also let whatever build up in my bank what I don’t spend as I don’t spend a lot, don’t drink or smoke. Don’t buy clothes unless I have to my only expenditure is Golf.

she has no debt no loans. I have the one loan my car which will be paid off in Jan.

enthusiasticsaver

You will be fine if affordability says £193k and you only need £187.5k  Many borrowers go up to maximum with a much smaller deposit.  Have you budgeted for fees etc? 

Hannimal

With a 20% mortgage you are likely to be able to borrow even more than that. I am on a similar income but as it's one person's income I pay way more in tax than you do. I had a 20% deposit and the product I am applying for is 192k in loan. The online mortgage calculators suggested I could get much less but my broker found something good for me. 

Carl2510

Thanks everyone for the sound advice.

i am only thinking about this now because I didn’t really think I could go that close to borrowing amount. And the thought of living with the in laws for w few years does not sit well!! Cause the house we did want on the development might not be built for a while yet. So looking at other options.

i will talk it over with the girlfriend tonight and work out how much in expenses it could cost. And see if we are able to manage.

also I shall get a AIP done with my mortgage Advisor as are pay has gone up a little since we last checked affordability. 

adrian84

Halifax has 4.75x multiplier so you are well on that, also virgin money have 5x so you can go up to 200 000 but it will be lower as you have 20%deposit. You can go on each site and check for yourself or talk with a broker
I am in similar position, 44k income 15% deposit house price 240 000. Personal loan 192 monthly and some balance on credit cards of 2000gbp and should be fine.

Carl2510

adrian84 said:

Halifax has 4.75x multiplier so you are well on that, also virgin money have 5x so you can go up to 200 000 but it will be lower as you have 20%deposit. You can go on each site and check for yourself or talk with a broker
I am in similar position, 44k income 15% deposit house price 240 000. Personal loan 192 monthly and some balance on credit cards of 2000gbp and should be fine.

This makes me feel a lot better thank you.

currently with Platform with my current mortgage and they also give a good amount to borrow.

getmore4less

Carl2510 said:

getmore4less said:

Forget what they will lend you as long as it is more than you need.
Work out what you can afford.
£40,500 income will be net £2,500-£2,900
£188k 5y fix <2%   £300pm is interest decide how fast you want to pay down the debt(savings)
20y £960pm
25y £800pm
30y £700pm
35y £630pm
40y £570pm
(longer term and overpay is better than shorter term more flexibility)
Are you renting now?  how much is that?
How much do you save every month?

Currently in the process of selling my house, at the moment I save £250 a month into shares that mature next year £9K guaranteed but possibility of more if share price is good. 3 year maturity if it was this year I’d of got 20K back. Currently between me and my partner we will have 80K in savings when I sell my house that’s without the share money. 

She currently lives with parents so saving £1K a month and I also let whatever build up in my bank what I don’t spend as I don’t spend a lot, don’t drink or smoke. Don’t buy clothes unless I have to my only expenditure is Golf.

she has no debt no loans. I have the one loan my car which will be paid off in Jan.

Whats your current mortgage?

With £80k between you, if that £235k place the house you want you will walk it unless you go crazy buying new stuff to put in it.

Throw £500pm each into a pot to cover the mortgage(35y/40y) and main bills  overpay if any left. loads left to live off.

When  pay goes up or you find you are not spending  you can look at the overpayment situation. £100pm will knock off 5 years, £200pm 10y.