1st mortgage offer

Hi there, we still have not yet officially applied for mortgage but wanted opinion if someone can give me one.
for 4 years we have been renting paying 800 a month. we were paying 700 a month in loans but 2 months ago we settled a case and received a lump sum. we paid off all loans. we put 20k into a deposit acc, and are now saving the 700 a month by direct debit.
we were going to wait 6 months to apply for mortgage but a house came up recently which would be our dream!
oh is in navy getting basic 490 a week(a lot more most weeks for sea etc but i have been told they wont count it!!) and i get 250 a week(36 weeks of the year as just do childrens classes.
on mortgage calculator sites we must have been using wrong figures from p60s as we thought wed get 215k! house we want is 235 so when we met bank friday we were disgusted to be told wed only get 137k! we could easily afford it monthly as were showing payment ability of 1500 a month but they kept mentioning net disposable income, we have 2 yr old child as well)
what id love to know is, if we apply for the higher amount any chance they will try to work with us to go above?

even if what we want is totally out of the question there is another house at 195 we would love..
thanks for reading!

What exactly is your annual income after tax for 2012?

You are doing very well to pay rent of 800 and save 700 effectively €18,000 out of an income of approx €29,500+ child benefit approx. €1,000 per month left to run a household.

My thoughts would be that the banks apply this rule of around €2050 per month + €250 euro per child that you need to be able to live of after mortgage etc. In other words, banks would take the current mortgage rate, add 2% and use that to means test you on paying the mortgage vaule. Then, after this value is calculated, they will take this from your net wage and then take the estimated living cost (€2,050 + €250) from the remainder. If neg then its a no at the mortgage rate you requested.

Well that is my understanding!!