Increasing agreement in principle amount?

kezzygirl

Hi, we have an agreement in principle with nationwide for £250k, however wish to have a higher amount. Would it go against us to request a higher aip, say for 280k ?

MaryNB

What is your deposit and income? They will be the key limiting factors. 
Did you get your AIP directly or through a broker? Often if they are done through a broker it will leave a hard mark on your credit report and you don't want too many of those right before a mortgage application. 

kezzygirl

MaryNB said:

What is your deposit and income? They will be the key limiting factors. 
Did you get your AIP directly or through a broker? Often if they are done through a broker it will leave a hard mark on your credit report and you don't want too many of those right before a mortgage application. 

Our deposit we stated as 40k, our income is 73k. We got the aip from our current provider nationwide,which we applied for ourselves. 

kezzygirl

Ideally we would like to pay a lower deposit as it is coming from our equity

MaryNB

At £73k, unless you have a poor credit history or very high outgoings, £280k should be more than achievable. 

The standard cap is 4.5x salary. Some banks may go to 4.75x or 5x if you have a high salary and low LTV.
4.5x £73k with a deposit of £40k gets you £368.5k with an LTV of 89%.  

For a 90% LTV you need a deposit of £28k and with that income of £73k,  £280k will be easily achievable. A deposit of £40k gets you an LTV of 86% which doesn't change your interest rate (needs to be 85% before it will go to the next interest rate band).

Have you shopped around to see if anyone else can get you a better deal? 

kezzygirl

MaryNB said:

At £73k, unless you have a poor credit history or very high outgoings, £280k should be more than achievable. 

The standard cap is 4.5x salary. Some banks may go to 4.75x or 5x if you have a high salary and low LTV.
4.5x £73k with a deposit of £40k gets you £368.5k with an LTV of 89%.  

For a 90% LTV you need a deposit of £28k and with that income of £73k,  £280k will be easily achievable. A deposit of £40k gets you an LTV of 86% which doesn't change your interest rate (needs to be 85% before it will go to the next interest rate band).

Have you shopped around to see if anyone else can get you a better deal? 

We haven't shopped around,just gone with our current mortgage provider. Would it be prudent to see if others could provide an aip? I dont want to harm our credit score,plus we have th option to port our mortgage but as yet we are  not sure which is the best deal

MaryNB

kezzygirl said:

MaryNB said:

At £73k, unless you have a poor credit history or very high outgoings, £280k should be more than achievable. 

The standard cap is 4.5x salary. Some banks may go to 4.75x or 5x if you have a high salary and low LTV.
4.5x £73k with a deposit of £40k gets you £368.5k with an LTV of 89%.  

For a 90% LTV you need a deposit of £28k and with that income of £73k,  £280k will be easily achievable. A deposit of £40k gets you an LTV of 86% which doesn't change your interest rate (needs to be 85% before it will go to the next interest rate band).

Have you shopped around to see if anyone else can get you a better deal? 

We haven't shopped around,just gone with our current mortgage provider. Would it be prudent to see if others could provide an aip? I dont want to harm our credit score,plus we have th option to port our mortgage but as yet we are  not sure which is the best deal

Start with a comparison website, see what other lenders will offer.
Before you do an AIP on any website check if if leaves a soft or hard check. Most done directly should be the former. I got a few AIPs from different lenders last year and none left a mark. 

As an aside, your credit score doesn't matter, only you and the credit rating agencies see it. Lenders don't, they look at your history and do their own scoring. It is advisable to avoid too many hard searches but don't worry about that score.