Worried About Mortgage Application

Little_Gem

Not really sure what I’m after here, just feeling really concerned about our imminent mortgage application. 

We have gone through a broker who checked with a number of mortgage companies and was confident we could easily get £270,000, she then got us an AIP for £270,750 with NatWest. 

We put in an offer for a house last week for £285,000 which was accepted, we only have a 6% deposit so require a £267,000 mortgage. I‘m now panicking that we won’t get offered the full amount when it comes to the full application. We are first time buyers so I’m pretty clueless about it all but I’ve done a couple of rough mortgage calculators this weekend with various providers and none of them have indicated that we would be offered close to what our broker managed to find. 

I’ve no idea why as the details are exactly the same as we gave the broker and nothing has changed! Is there a reason the broker would get higher offers?

Starting to panic as we love the house and would be gutted to lose it and we just don’t have anything spare to make up any difference (I blame extortionate childcare costs!). 

[Deleted User]

Hi your broker maybe did a 35/40 year term , sometimes the calculators default to 25 years 

housebuyer143

Little_Gem said:

Not really sure what I’m after here, just feeling really concerned about our imminent mortgage application. 

We have gone through a broker who checked with a number of mortgage companies and was confident we could easily get £270,000, she then got us an AIP for £270,750 with NatWest. 

We put in an offer for a house last week for £285,000 which was accepted, we only have a 6% deposit so require a £267,000 mortgage. I‘m now panicking that we won’t get offered the full amount when it comes to the full application. We are first time buyers so I’m pretty clueless about it all but I’ve done a couple of rough mortgage calculators this weekend with various providers and none of them have indicated that we would be offered close to what our broker managed to find. 

I’ve no idea why as the details are exactly the same as we gave the broker and nothing has changed! Is there a reason the broker would get higher offers?

Starting to panic as we love the house and would be gutted to lose it and we just don’t have anything spare to make up any difference (I blame extortionate childcare costs!). 

NatWest lend 5x your income I believe which are one of the more generous out there, I imagine that is why your broker chose them? 
NatWest have an online calculator if you are concerned which will detail how much they will likely lend you. Be sure to put in all costs into the calculator to get a realistic answer. 

I see no reason the broker would apply to a lender who will not accept you. Try not to worry, it should be okay. 

https://www.natwest.com/mortgages/mortgage-calculators/how-much-can-i-borrow.html

K_S

@little_gem Quick comments -

- This is the most accurate affordability calculator for NatWest BUT please don't panic if it doesn't return what you expect, that could simply be due to not filling in the numbers as per criteria
https://spa.mortgages.natwest.com/calculator/residential-affordability

- Off of the top of my head, NatWest loan to incomes go from 4x (at 95% LTV) to 5.5x (for certain income levels and LTVs). As long as you indicated that you will need a 95% LTV mortgage and the broker has done the DIP at 95% LTV, you should have nothing to worry about. But if you indicated to the broker that you will have a 10% deposit and that's what they did the DIP on, then there can be a difference on the max loan size

Any concerns, just drop a note to your broker. Good luck!

Little_Gem said:

Not really sure what I’m after here, just feeling really concerned about our imminent mortgage application. 

We have gone through a broker who checked with a number of mortgage companies and was confident we could easily get £270,000, she then got us an AIP for £270,750 with NatWest. 

We put in an offer for a house last week for £285,000 which was accepted, we only have a 6% deposit so require a £267,000 mortgage. I‘m now panicking that we won’t get offered the full amount when it comes to the full application. We are first time buyers so I’m pretty clueless about it all but I’ve done a couple of rough mortgage calculators this weekend with various providers and none of them have indicated that we would be offered close to what our broker managed to find. 

I’ve no idea why as the details are exactly the same as we gave the broker and nothing has changed! Is there a reason the broker would get higher offers?

Starting to panic as we love the house and would be gutted to lose it and we just don’t have anything spare to make up any difference (I blame extortionate childcare costs!). 

ACG

Natwest were the lender I used most pre-covid. 
I dont think they ever reduced a loan amount. I remember having a very complex income one, my account manager just said to explain the figures I had used and hopefully the underwriter would accept it - it was a bit vague but the only option we had. They were fine with it. 

I have only had them decline 3 applications - One was my fault, another the clients and another was just underwriters discretion. Ironically we submitted the same case 3 months later and it was accepted. 

They are generally quite a good lender (they were better pre-covid), but if your concern is them lowering the loan amount, my experience is that is very unlikely. 

One thing to note is their website is saying to allow 22 working days for your application to be assessed, that means more or less a month with weekends. Dont read into that, its not a sign your application is a bad one. It just means Natwest are well behind at the minute. So you will need to put it to the back of your mind for a month, you cant spend a month worrying, you will have stumps for fingers. 

Little_Gem

I really appreciate how kind you have all been with your replies. Thank you for the reassurance, I’m going to speak to the broker tomorrow and trust that they know what they are doing much better than I do! I will then try not to worry for the next few months - but I can’t promise anything on that one!!