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Borrowing close to maximum

3 replies

hopefully2021 · 15/03/2021 07:39

Hi all, bit of background we are FTBs - had an offer accepted last week and will be putting through our mortgage application this week however I am slightly nervous as we are borrowing very close to our maximum which we can lend (about £4k under). Is this risky and will we more likely be refused because of this?
We were originally looking at houses about £50-75k less not many were coming up so the competition was so intense t that we didn't have a chance (we were also having to look further out area wise than we really wanted). I decided to change tactic and up our budget so we could come closer into London and be closer to parents and with the aim of finding a house which could be our family home and we wouldn't need to move in say 5 years.
In terms of affordability we can definately afford a more expensive house, repayment quotes I've had are between £1.2-£1.3k a month and we currently have a combined income of just over £5k, no dependants, no student loans, no car finance & no credit card debts + we have 15% down.
Just looking from experience if anyone has had mortgages go through smoothly even when they are borrowing close to their maximum limit on their AIP or what questions I can expect to come up?

OP posts:
Onjnmoeiejducwoapy · 15/03/2021 09:19

I recently had AIP for 175,000 with Halifax (the highest anyone would go) which came through as a final offer of 171,000. Which I was very pleased with as majority of others had said AIP of 163,000. Do you have a broker?

hopefully2021 · 15/03/2021 09:29

@Onjnmoeiejducwoapy yes we have a broker, will this make a difference?

OP posts:
PresentingPercy · 15/03/2021 09:37

Brokers can trawl the market for the best deals. Don’t forget the maximum loan is set by the individual lenders. Not you. You just hope they agree! Your loan to value ratio isn’t high so you might find the interest rate is slightly higher but i think you can afford what you say. After all, rent would probably be the same! It will depend if you are self employed, have a secure income not earned by commission etc. Good luck.

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