Very very confused :s

[Scout]

Hi everyone,

Hoping someone can help me. I'm on a salary of roughly £20,000 a year and I've just done an online mortgage calculator that has said that my bank would lend me roughly £70,000. I have saved a deposit of £20,000 so far. My question is this: does this mean that I can look for properties of £90,000 as I have a £20,000 deposit and the bank has said they will lend me £70,000? Or is the £70,000 that the bank will lend me inclusive of my deposit (so I will only actually be borrowing £50,000) and therefore the maximum value of a house I can buy is £70,000? Sorry if this sounds confusing. I'm just not sure whether to look for houses with a value of £90,000 or £70,000. Hope someone can help me get my head around this

[IFA]

Lending calculators will show you how much you can borrow in addition to your deposit funds, so if you can borrow £70,000 and have £20,000 deposit you can buy a property valued at £90,000.

It may be worthwhile shopping around to compare other lenders (maybe speak to an independent adviser to save you the time) as they all vary in how much they will give you as a maximum.

[Scout]

Thanks guys. That's good news. Definitely better to have £90,000 to spend on a house than £70,000

[Dan S]

That extra 20k should make a huge difference for you! Where are you looking to buy?

[ComareTheMortgageMarket]

Scout, remember you do not just have to obtain a mortgage from your own bank, you could always talk to a broker that has access to the whole of market as there is possibly some better deals.

[Dan S]

Comparethemarket is absolutely right. They can also fight your case if there are any peculiarities in the way you're paid (inclusion of bonuses and overtime for example).