I was watchng a program on Channel 5 the other day about a couple who were looking to buy a place in London. Basically, they'd saved a deposit of 5% of around 11/12K, and their budget was around 170K (I think maths may be a bit squify, but this is definately the numbers and percentage they were talking about). However, because they spent so long looking for a suitable property, they'd saved even more deposit (around 23K), so it meant they could borrow a lot more - upto about 240K. However, the amount they could borrow seemed to go up exponentially to the amount of the deposit, so the bigger deposit they had, the more they could borrow. Does this sound right? I didn't think the deposit to borrowing amount made any difference. I thought the amount depended on what you could afford based on your income, so even if you could afford a huge deposit, you still couldn't take a huge mortgage way above your salary because you just couldn't afford it.
Been a long time since I bought a house.....