Do banks have a wide discretion when considering a mortgage

[vicalncraig]

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.

[Loosehead]

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.

[stevie21]

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.

[vicalncraig]

Thanks for taking the time to answer my question, much appreceiated.

[WoWo]

Just to clarify the point about self cert from Loosehead...

lying = commiting fraud.