Quote Originally Posted by scotty_82 View Post
Stapes the weird think was they were in principle saying on our incomes we could borrow well over 200k but we were only wanting to borrow 100k minus the deposit of 10%. Thats when it all went tits up .

Anyway we scrapped off lloyds and went with an independent and secured one no probs, to add to the hate ill mention estate agents, they also suck balls.
Mate, Estate Agents are absolute scum. Total and utter scum. They are the paedos and rapists of the business world.

I know what your saying Scott but how much they will lend you and the % of deposit you need are two different things. I assume they looked at all your permitted income (some income is not accepted by some lenders, eg overtime that isnt guarunteed) then deducted whatever you pay out each month in commitments (utility bills, council tax, loans, credit cards etc) then multiplied it by whatever.

That only works out the max they will lend to you. Regardless of this amount they will ask for a set % as your contribuiton. In other words, they demand that you take a % of the risk. Its called the loan to value or LTV. So if you want 90k for a house valued at 100k (you put down a 10% deposit of 10k), it doesnt matter if they will lend you 200k, the LTV will remain the same. They will want you to put down 10%

Otherwise they'd be lending you all the money for your house (100% LTV) and all the risk would be on them. Thats precisely why 100%, 110% and 125% mortgages have been scrapped. Does that make sense pal? Good work qualifying for 200k by the way!!!

Stapes