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Do banks have a wide discretion when considering a mortgage

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vicalncraig | 16:21 Wed 25th Jan 2006 | Business & Finance
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My earnings are not great, approx 15k take home. I was offered approx <56k last year. Since then I have been saving 250 a month to indicate to the bank that I am capable of saving regularly as I am looking for a mortgage of 90-100k. Does the bank have the flexibility to up the ante on this basis? I have saved around 4k to date.
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Lender's can lend whatever they think fit, however they are generally limited by their own internal rules and they are generally a formula based on multiples of income. The only way to get them to increase the multiple is by going for self-cert and effectively lying about salary for this though you will pay a higer rate.

If you have earnings of �15K and savings of �4K then you won't get anywhere near �90K as a mortgage. You'll need a minimum of 5-10% as a deposit alone (not to think of legal fees, potential stamp duty etc.) and the mortgage is likely to be 3 x your gross salary.

You'll either need a better job and more savings or a guarantor. Or you'll need to be more realistic with your aims.
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Thanks for taking the time to answer my question, much appreceiated.
Just to clarify the point about self cert from Loosehead...

lying = commiting fraud.

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