Mortgage advice

[BeverlyGoldberg]

We've had an offer accepted on a house. We did a mortgage application with a small building society last week. They came back to say they would be happy to lend to us but not the amount we need. They also said they were a small organisation and therefore fairly conservative in their lending, but we had no credit report issues.

Since then we have gone to London and Country. Their recommendation was a high street lender, the broker said we meet their criteria and he is happy they are a good fit fit us. The application is being carried out on Monday.

So my question/situation is that I'm really anxious that we won't get the amount we need.

Has anyone been in a similar situation who can tell me stop worrying. I'm trying to hold myself back from getting excited in case this dream all falls apart.

[Karcheer]

I think it's all to do with the loan to value ratio, no one is going to lend if this is ridiculous but I'd think a larger lender would take a bigger risk. You can use online calculators to see who theoretically would lend, obviously each case is different but might make you feel more confident. Good luck.

[BeverlyGoldberg]

Thanks Karcheer.

We've done the online calculator and that came back at more than we wanted but my confidence has been knocked by the smaller building society.

I was looking on Pinterest earlier for ideas for the new garden and then thought I'd better calm my shit down in case we don't get it!

[Andcake]

Didn't you get an offer in principle before you started house hunting. My ea both ways almost refused to take/accept offer unless I could show them offer in principle. We're having a nightmare time with buyers dropping out and survey issues and I wish I hadn't started dreaming as it really won't be mine until I get those keys!

[jevoudrais]

Depends on how much you earn/credit commitments etc. Online calculators are only accurate if you fill them in correctly. 4.5-5 times income is usually the max loan but if you have dependents/credit it will be reduced.

[myotherusernameisbetter]

It should be based on affordability now, not a multiple of your salaries.

So, as long as you can demonstrate affordability then it should be fine as long as it fits within the lending criteria e.g Loan to Value etc.

If you don't get the amount you need based on the computer say so, it is worth asking if they can look at a manual appraisal instead.

We had this done when applying for a mortgage after I was made redundant and needed to relocate for my new job. Criteria dictated I needed 6 months with my new employer before getting the mortgage but obv from a practical point of view that wasn't going to work.

The lender was the company that had just made me redundant so my argument was that they weren't worried about how I would pay the mortgage when they made me redundant so surely should be even less worried now that I have a new job....then they approved it.

[BeverlyGoldberg]

We have an agreement in principle for around £30k more than we need to borrow. However I read a thread on here that said they're not worth the paper they're written on.

We have done credit commitments. DH has a large balance on a credit card and I have a smallish personal loan for my car - and it's a 95% mortgage.

[BeverlyGoldberg]

Sorry that should read "some" credit commitments. Typing this on my phone.

[myotherusernameisbetter]

It doesn't sound like you have any need to worry, also there is no point worrying about something that you can do nothing about at the moment and also that may never happen. Based on your agreement in principle. your broker should be able to get you what you need even if it isn't with your first choice lender.