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Bank lending rules when putting in big deposit - affordability calculator

  • 03-01-2022 7:46pm
    Registered Users Posts: 1,736 ✭✭✭ Buddy Bubs

    As above, on the budget calculator it's telling me I can buy a house in the region of 750k.....this is based on me in my income, my fiances income and 175k equity from my own house if I 575k mortgage they say we could draw down. This is well in excess of 3.5 times combined income.

    Now luckily I don't need anything like that, I just need a mortgage of about 230k if I sell my own and use the equity.

    Where are they getting the figures from? Do banks lend more if LTV is low? I thought it was 3.5 times regardless


  • Registered Users Posts: 2,898 ✭✭✭ Sarn

    Those calculators tend to be inaccurate. It’s a ploy to get you in the door of the bank. The only accurate way to know how much you can borrow, is to make an application.

  • Registered Users Posts: 1,736 ✭✭✭ Buddy Bubs

    Yeah was just wondering how the figure was so high. If we do what we are planning we only need about 200k to 230k for a 450k house so we are well able to borrow that. Just bit shocked daft calculator putting us up in the 750k bracket