how to know how much I can borrow
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That's not where I ended up when googling it. I found this:
https://personal.natwest.com/personal/mortgages/mortgage-calculators.html0 -
That's not where I ended up when googling it. I found this:
https://personal.natwest.com/personal/mortgages/mortgage-calculators.html
That page has a button for getting an agreement in principle and it says 'no impact on your credit file' - why don't you do it, it will be more reliable than an online generic calculator?
It's also a good starting point when talking to a broker, especially if you won't be happy with the figure that AIP will display. Just be careful, only get AIPs with lender that don't hard search you, so that your credit file is not affected.i'd rather not post all those details online for everyone to see. But if the banks and brokers will talk to me without a house in mind that I want to buy then that seems like a good option.
Open a new forum account "John Doe" and you can post all that info completely anonymously. Although I'm assuming your name isn't Jeff Mason so I don't see why you cannot post now. (apologies if it is).
Good luck.0 -
That page has a button for getting an agreement in principle and it says 'no impact on your credit file' - why don't you do it, it will be more reliable than an online generic calculator?
No it wont. The DIP form uses the same calculation as the calculator otherwise you would get 2 differing results and loads of unhappy customers. Put the same information in one as the other and you will get identical results for lending amounts.
I am surprised you think that calculator is complex considering you are pointing people towards DIP forms which have many more questions.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
@ACG: I'm pointing him to a broker, actually :-) from his posts he does seem to need one. Doing some research beforehand doesn't hurt though.
That Natwest calculator for brokers I posted does seem simple, and it might be for you and other brokers - but what counts as main income, other income, committed expenditure etc? From what I know each lender's policy is different with regards to these things.
I find DIP/AIP online forms more user-friendly, as they are designed for us clients, not for you intermediaries. You can probably fill out these forms with your eyes closed...0 -
This was actually quite easy to make sense of, and it gave an almost identical amount as the other Natwest calculator I found, both very similar to Santandar.0 -
You should be able to get a mortgage 3x your income - that's a conservative estimate. But, you could also get 4.5x your income. You might have made a mistake in entering your data, which suggests you could use some help.. or read more.
How much mortgage are you looking to get, how much deposit do you have, what's your PAYE income, do you have any debt or loans, do you have any dependants, etc? If you post all that info here some of the nicer brokers on here might be able to tell you if it looks doable or you should lower the expectations. Or you could call a broker or your bank, it's free
Further to this -- I'm able to offer a large deposit, don't have any debts and only a small student loan. I do have a child who lives with his mum most of the time and I support with regular payments.
My PAYE job is part-time and paying around 23k, going up to around 27k next year. So it seems the Natwest and Santander calculators are offering somewhere in the region of the 4.5 times you mentioned, and Nationwide is less than 3x... It's good to start making sense of this stuff...0 -
The governing body brought in a rule that large (lenders who lend over £100m a year) mortgage lenders can only lend 4.5x income to 85% of the mortgage customers. That means they can look for little niches to go beyond 85% if they like. One of those niches may be people with a 50% deposit.
The interesting thing is that prior to this rule, lenders would typically lend up to maybe 6x income.
So if you have commitments (debts, maintenance etc) then some lenders will start off at 6x income, subtract an amount for your commitments and if still above 4.5x income, apply the cap. Other lenders may start at 4.5x income and reduce your commitments from that. Lets assume there are say 90 lenders out there, it would not surprise me if you ended up with at least 45 different figures.
Once a month we receive an email from a company we use where they have used the exact same situation and run it by around 10-15 lenders. Bare in mind this is for the same situation, look at the difference in how much they will lend. I have rmeoved the lenders names so I can not be seen to be leading you.
£280,300
£280,250
£265,500
£265,500
£265,500
£265,000
£264,910
£264,910
£264,910
£264,910
£262,550
£256,800
£250,700
£245,500
Funny how 4 lenders will lend the same amount, I am going to assume that is the 4.5x multiple kicking in. But you can also see other lenders will not lend that much and some will lend more.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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