The Student Room Group

Advise on Mortgages and borrowing money from Lenders

If I were to stick with the same mortage lender that I'm currently with, and bought a more expensive property, if my income has not changed, would I be likely to be able to borrow more from the lender, if I continue to make regular mortgage payments each month on my current house?
Reply 1
I'm not sure whether you mean that you want to sell your existing property to buy a new one, or that you want to keep your existing property and buy a second one.

Whether you will be able to borrow more will depend on the lender's assessment of your ability to make the increased payments.
Reply 2
Original post by martin7
I'm not sure whether you mean that you want to sell your existing property to buy a new one, or that you want to keep your existing property and buy a second one.

Whether you will be able to borrow more will depend on the lender's assessment of your ability to make the increased payments.

I would be selling my existing property and buying a slightly bigger property.
Usually a lender has a cap of how much they will offer based on your income. So far as I know this isn't affected by being in good standing with them, so if your income has stayed the same and their policy hasn't changed since you took it out they'll probably offer you up to the same amount as before. Lenders do review their offerings frequently though, so you could find the amount available has gone up or down.

Presumably you'll be taking some/all of the funds from the property sale to use as your deposit, so as a % of the new property value you may not need to borrow as much though.
Reply 4
Original post by Admit-One
Usually a lender has a cap of how much they will offer based on your income. So far as I know this isn't affected by being in good standing with them, so if your income has stayed the same and their policy hasn't changed since you took it out they'll probably offer you up to the same amount as before. Lenders do review their offerings frequently though, so you could find the amount available has gone up or down.

Presumably you'll be taking some/all of the funds from the property sale to use as your deposit, so as a % of the new property value you may not need to borrow as much though.

Yes, I'd be using all of the funds from the property sale to use as my deposit for my next house and I'm also currently saving to put more money towards the new house, so that I can afford it.
Original post by laninadeidiomas
Yes, I'd be using all of the funds from the property sale to use as my deposit for my next house and I'm also currently saving to put more money towards the new house, so that I can afford it.

Worth either booking an appointment to speak to one of your lender’s mortgage advisors. Either that or using their online mortgage calculator.
Reply 6
In my experience, sticking with the same mortgage lender when upgrading to a more expensive property can have its benefits. Consistent, on-time mortgage payments on your current house reflect positively on your financial responsibility. However, borrowing more depends on various factors like your credit score, debt-to-income ratio, and the lender's policies. It's advisable to seek professional financial advice to assess your specific situation. Additionally, before getting a loan or mortgage, always make sure to check reviews online (for example, here are holborn assets reviews) to ensure you're working with a reputable lender.
(edited 1 month ago)

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