Does having substantial deposit get you bigger mortgage?

[brille]

Before I start ringing banks and brokers, does anyone know if having a substantial deposit (from sale of present house) can get you a bigger mortgage? I would have thought that you would be less of a risk for banks, as you have invested (33%) equity in the house. But do they still go on earnings only?

 

[Deckat]

When I got my mortgage the bank went on ability to repay, not multiple of income. They set the maximum they would give me by taking 35% of my net earnings as a monthly repayment and working back from there. This meant I was able to get a higher mortgage than 4 times salary.

I suppose they still went on earnings only though.

 

[Pseudonym]

AS the previous poster said it is the ability to repay your mortgage that is the key, not the amount of equity you put in. For example if you are buying a house for €600k and have €200k deposit (33%), you will have to prove that you have the ability to repay a mortgage of €400k (usually at stressed rates), even though the LTV will be at 67% and the bank will be "well secured".

The last thing a Bank wants to do is get involved in a "Forced Sale" situation.