Deposit and amount borrowed

BrotherUuurgh

Hi, probably a silly question but one that's bugging me anyway. 

When I play with the Nationwide mortgage calculator I get a number back that they're potentially willing to lend. Changing the deposit amount has no effect on the amount borrowed, so I'm wondering if the deposit is simply a down payment or if it serves any other purpose? Eg, with a deposit of £50k NW may lend ~£187k, so does this mean I could consider properties up to £237k, or that I could consider up to £187k but have a £137k mortgage?

Sorry for the silly question, but wasn't sure how to articulate the question so haven't got very far with a Google search. Thanks anyway 🙂

housebuyer143

The max they will lend you is the max loan you will get. Any deposit you have is on top of that amount, so you would be looking at houses at £237k.

amnblog

Does the Nationwide Calculator not have two separate boxes?

Price of the property you would like to purchase

Deposit amount

The output figure is the amount you can borrow after your deposit.

Borrow £187,000, £50,000 deposit, price £237,000

The size of the deposit relative to the purchase price can affect the maximum borrowing which is why the lender asks for both figures.

BrotherUuurgh

It was a while ago now that I used their calculator so may have changed since. It's just been playing on my mind recently for some reason 🙂

Thank you for your help.