You are here: Home - Mortgages - First Time Buyer - News -

Choose your mortgage lender carefully to double your buying power

0
Written by: Christina Hoghton
13/11/2020
Picking a lender that will offer you a larger mortgage could make a huge difference to your buying power.

Choosing the right lender can make the difference between securing a detached house over a semi-detached property for home movers, according to MBT (Mortgage Broker Tools).

The business – which provides technology to mortgage advisers – found that the average maximum mortgage loan available to home movers was £318,571 in October.

But it said the average minimum available loan offered to home movers was £157,000 – a staggering difference of £161,571.

First-time buyers could borrow an average maximum loan available of £274,500 in October, while the average minimum available loan was £140,828, according to MBT’s affordability index.

That’s a difference of £133,672, which could be enough to upgrade from a flat to a semi-detached house. According to the Office for National Statistics, the average price of a flat or maisonette in the UK is £203,708, while the average cost of a semi-detached house is £230,455.

Tanya Toumadj, CEO at Mortgage Broker Tools, said: “There’s a huge disparity in the amount that different lenders are prepared to lend based on the same set of customer circumstances, and this could prove to be the difference in a home buyer being able to afford a bigger property or more desirable location.

“We know from reports from estate agents that larger properties and those with more outside space are in greater demand as a result of the pandemic and shopping around to achieve the best affordability calculation could help customers to achieve this.

“There are considerations in taking on a larger loan size but being able to upgrade the property they buy now, may save customers from making multiple home moves in the future and could ultimately save them money in the long-term.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Generation Home launches with mission to help people buy together

The start-up mortgage lender received £500m-worth of initial mortgage enquiries from first-time buyers within days of its Insta launch.

Close