Do different banks loan different mortgage amounts?

[HollieTalbut1997]

Hi,
I got my first decision in principle approved a few weeks ago and have now had an offer accepted on a home.
I had a meeting with my lender today to get the mortgage process properly started but when they started doing the checks they said they couldn’t loan me the full amount I need (by £3,000 - it’s not loads, but could do without having to make this up in cash).
I am asking to borrow less than 4x what I earn so I can’t understand it. I don’t have any depts and never have. I lead a fairly inexpensive lifestyle and have been saving around £1300 a month recently. They couldn’t really advise what the issue is.
I’m going to try another lender but has this happened to anyone and will different banks give different amounts?

thanks

Yes but use a mortgage broker - applying for multiple products can have a negative impact.

This. Have worked in mortgage broking 24 years. Lenders also calculate income in differing ways.

different places can give different amounts. A general rule of thumb is the ones with the higher interest rates have less restrictions and so lend more.

work this into your calculations, it may be that you being able to put that additional 3k in saves you a fortune.

Absolutely this, a broker will find you the best deal.

Speak to a mortgage broker they can persuade underwriters etc

They really didn’t for us! Got a far better deal going direct (to Halifax, but I think the principle applies generally).

OP have you had a look at your credit score? There may also be some random things affecting the underwriter decision - I was spending a lot on my credit card (for the points, and paying it off in full each month). That was apparently an issue, I had to stop using it for two months before they’d issue the mortgage.

@Saschka, this is so strange - I only really use my credit card at all and pay it off every month, to improve my credit score. It definitely does affect it - I have 2 scores that I alternate between depending on whether I've used it or not.

Same, but they classed it as a “debt”. Literally wrote as a condition of the mortgage offer that I had to “clear my debt to Nationwide Building Society before the mortgage would be issued”. There was a thread on property a couple of months ago where a few people said the same.

Definitely use a mortgage broker (L&C are good, and free). Never just go to one specific lender!

@MotherOfRatios as an Underwriter of 20 plus years I can confirm that no broker is able to persuade me to lend outside of my company's very strict affordability model. Affordability is probably the most strictly regulated aspect of lending these days

Again does vary between lenders.

Oh I’m sure it does vary - just mentioning it as OP passed the first affordability checks then had the loan amount reduced by a very small amount.

Persuade was used in haste but they can explain things etc