Home movers wanting to upgrade to a detached house might be locked from the best deals, particularly in London and also the East, due to the borrowing caps set by a few lenders.
Which? analysis of Moneyfacts data discovered that 25 percent of of the best two-year and five-year fixed-rate mortgages (in an 85% loan-to-value ratio) cap borrowing below lb750,000.
Of course, most buyers are in the marketplace for homes which are well below this threshold. But since average detached home costs around lb906,825 working in london, some would-be movers might be in for an unexpected.
We have a look mortgage lending caps and provide suggestions about how you can ensure you can get the loan you need to purchase your next property.
Big mortgage lending caps
When you’re shopping at the top end from the market, you need to pay close attention to the utmost advance limits set by lenders. These determines the most you might be permitted to borrow.
Our analysis of two-and five-year fixed-rate mortgages found a higher concentration of maximum advance caps were set below lb750,000.
Of the 208 two-year fixed-rate deals available on an 85% loan-to-value, we found 49 had a cap of between lb250,000 and lb750,000 for home movers.
It would be a similar picture for five-year deals, with 43 from the 179 deals available coming having a maximum advance limit of between lb250,000 and lb750,000.
Mortgage deals with small vs big borrowing limits
These limits could cause trouble for home movers buying in pricier areas of the country.
In the East, for instance, the average price of a detached rentals are now lb555,615, based on Land Registry data and in London a detached home costs a whopping lb906,825.
The average price of a detached home within the UK
Best mortgages for giant loans
In an expensive area, you might find the best rates available generally won’t extend to the home you need to buy.
Below are the best deals for borrowers that come with a lb1m or higher maximum advance cap for second-steppers along with other home movers.
Best two-year fixed rates
| LTV | Lender | Term | Initial rate | Revert rate | APRC | Fees | Min/max advance limit |
| 60% | Halifax | Fixed to 31/05/2022 | 1.43% | 4.24% | 3.9% | lb1,495 | lb250k/lb1m |
| 65% | Yorkshire Building Society | Fixed to 30/06/2022 | 1.54% | 4.25% | 4.2% | lb995 | lb25k/lb5m |
| 70% | HSBC | Fixed to 31/07/2022 | 1.5% | 4.19% | 3.9% | lb1,499 | lb10k/lb1m |
| 75% | Digital Mortgages by Atom Bank | Fixed to 30/06/2022 | 1.44% | 4% | 3.64% | lb1,200 | lb350k/unlimited |
| 80% | Digital Mortgages by Atom Bank | Fixed to 30/06/2022 | 1.56% | 4% | 3.66% | lb1,200 | lb350k/unlimited |
| 85% | Halifax | Fixed to 31/05/2022 | 1.65% | 4.24% | 4% | lb1,495 | lb250k/lb1m |
Best five-year fixed rates
| LTV | Lender | Term | Initial rate | Revert rate | APRC | Fees | Min/max advance limit |
| 60% | HSBC | Fixed to 31/07/2024 | 1.81% | 4.19% | 3.4% | lb1,499 | lb10k/lb5m |
| 65% | Yorkshire Building Society | Fixed to 30/06/2024 | 1.89% | 4.99% | 3.7% | lb995 | lb25k/lb5m |
| 70% | NatWest Intermediary Solutions | Fixed to 30/06/2024 | 1.91% | 4.24% | 3.5% | lb995 | lb25k/lb10m |
| 75% | Barclays Mortgage | Fixed to 30/04/2024 | 1.9% | 4.24% | 3.4% | lb999 | lb5k/lb1m |
| 80% | Halifax | Fixed to 30/06/2024 | 2.01% | 4.24% | 3.5% | lb1,499 | lb250k/lb1m |
| 85% | Digital Mortgages by Atom Bank | Fixed to 30/06/2024 | 2.04% | 4% | 3.30% | lb1,200 | lb350k/unlimited |
How much are you able to borrow?
The maximum lending cap isn’t the only thing you’ll have to consider when borrowing to move home.
Lenders will even consider what you can repay. Often, you’ll be limited to borrowing between three and four-and-a-half times your total income. So, for instance, to gain access to lb500,000, all your family members will have to earn at least lb111,111 annually.
You can use our calculator below to work out approximately how much you might be able to borrow:
You’ll should also show proof of your day-to-day expenses and then any other loans, along with your credit rating, to provide lenders a complete picture of methods much you can afford.
And don’t forget to element in rate of interest fluctuations. Even if you be able to comfortably afford repayments now, consider what can happen in case your rate went up by 2-3% in future.
