15 per cent deposit

HIA

DD and partner have been told by advisor they will only get max £102k mortgage with a deposit of £18k i.e. 15 percent even though they have joint income of £80k. He is first time buyer she isn't. Is this correct and are any lenders offering more?  All changed from when I had a mortgage and it was based on multiples of income.

grumiofoundation

It hasn't all changed. 

Max amount lender will lend can be limited by salary OR by LTV (ie limited by deposit as in this case).

If they want to borrow more they may have to wait until lenders bring back higher LTV mortgages. 

haras_n0sirrah

There is a way around the 15% deposit if income is high enough (which it looks like it is in this situation)
Most lenders are up at 4.5x - 4.75x income so unless they have very large outgoings that looks low

allygate

HIA said:

DD and partner have been told by advisor they will only get max £102k mortgage with a deposit of £18k i.e. 15 percent even though they have joint income of £80k. He is first time buyer she isn't. Is this correct and are any lenders offering more?  All changed from when I had a mortgage and it was based on multiples of income.

Unfortunately, in this case it appears your DD has come up against the 85% LTV limit due to the current shortage of high LTV deals in the market.There are a tiny handful of small lenders who are offering 90% LTV mortgages, subject to meeting a lot of conditions, but I assume their broker has looked at that.

Another option is using guarantor mortgages (like the Barclays Springboard ones) which may lend up to 95% with someone else (such as parents) standing guarantor.

Thrugelmir

HIA said:

DD and partner have been told by advisor they will only get max £102k mortgage with a deposit of £18k i.e. 15 percent even though they have joint income of £80k. He is first time buyer she isn't. Is this correct and are any lenders offering more?  All changed from when I had a mortgage and it was based on multiples of income.

Information missing perhaps?  Income multiple is just one factor.