Mortgage - how much can I borrow?

[Hoink]

Hi all,

I appreciate this will vary massively depending upon various factors but I was hoping to get a general idea.

Me and my partner are currently thinking about moving and were looking at some online mortgages however the value we can borrow from the comparison websites seems to be a lot lower than I expected. The formula used is:

- 4 times the main annual income in addition to 1 times the second income, OR,
- 3 times the joint annual income

Is this generally right?

When I check the websites of the banks directly the figure seems a lot higher and more like what I expected.

As a side note:
- both employed with decent jobs
- no debt
- 15-20% deposit available
- current homeowner
- excellent credit rating

Note; I will be getting some "proper" advice, this is just to help with house hunting in the meantime

Thanks,

Hoink

[anonymous-user]

just a pick a few products you like the look of based on trawl of usual info and then go to the lenders website for the small print... comparison websites are not as useful for mortages as they are car insurance i find

assuming no hidden nasties etc and given your target ltv of 80% you should have access to fair chunk of the market albeit not at the best rates (ie 60% ltv or lower)

and if you want someone to do the leg work for you pm me (not me btw!)

[Crafty_]

Post in the finance section (or get the post moved there, "Sarnie" will most likely reply, not used him myself but he has helped out numerous PHers.

[Hoink]

Thank you both - much appreciated.

I will get this moved

[dmitsi]

Speaking to a decent broker is the key. It's finding the decent ones that can be tricky. Example, my girlfriend can borrow five and a half times income, the broker has always found great deals and takes away a lot of stress.

[Sarnie]

Crafty_ said:

Post in the finance section (or get the post moved there, "Sarnie" will most likely reply, not used him myself but he has helped out numerous PHers.

Thank you crafty, that's very good of you!

I have indeed helped dozens of PH'ers and currently have 11 live applications from PH'ers

To the OP, you will be able to get 5x your JOINT income as a maximum. Drop me a PM if you want to chat over potential figures!

[Hoink]

Sarnie said:

Thank you crafty, that's very good of you!

I have indeed helped dozens of PH'ers and currently have 11 live applications from PH'ers

To the OP, you will be able to get 5x your JOINT income as a maximum. Drop me a PM if you want to chat over potential figures!

Thank you, much appreciated.

[Hoink]

Well, a bit of an update since I've made some progress (of sorts).

My lass currently has a mortgage so we just enquired about the possibility of porting her product, borrowing more and adding me to the account.

So...
We are inside the affordability
We both have excellent credit ratings

But it's being referred to an Account Manager (not an Underwriter)

I'm worried it might be my separated status, which has been the case for about 1.5 years. I've no ties with my previous partner or the house but we can't think of anything else it might be. We both have small loans, no other debt, but surely that would have been flagged in the affordability check.

Rubbish We are both worried sick. The bank is ringing back tomorrow.

[Sarnie]

Hoink said:

Well, a bit of an update since I've made some progress (of sorts).

My lass currently has a mortgage so we just enquired about the possibility of porting her product, borrowing more and adding me to the account.

So...
We are inside the affordability
We both have excellent credit ratings

But it's being referred to an Account Manager (not an Underwriter)

I'm worried it might be my separated status, which has been the case for about 1.5 years. I've no ties with my previous partner or the house but we can't think of anything else it might be. We both have small loans, no other debt, but surely that would have been flagged in the affordability check.

Rubbish We are both worried sick. The bank is ringing back tomorrow.

Not much need to worry, if your credit is decent and earnings are sufficient somebody will lend to you even if they won't.

[Hoink]

Sarnie said:

Hoink said:

Well, a bit of an update since I've made some progress (of sorts).

My lass currently has a mortgage so we just enquired about the possibility of porting her product, borrowing more and adding me to the account.

So...
We are inside the affordability
We both have excellent credit ratings

But it's being referred to an Account Manager (not an Underwriter)

I'm worried it might be my separated status, which has been the case for about 1.5 years. I've no ties with my previous partner or the house but we can't think of anything else it might be. We both have small loans, no other debt, but surely that would have been flagged in the affordability check.

Rubbish We are both worried sick. The bank is ringing back tomorrow.

Not much need to worry, if your credit is decent and earnings are sufficient somebody will lend to you even if they won't.

Hopefully...

It's just the unknown, fingers crossed it all goes through.

[VTECMatt]

I had a decent deposit 20%, I do ok on the earnings front, wife less than 10K a year. I have had a nightmare trying to get my mortgage product ported across, might be something to do with the fact it is .75% over base. Net result is I paid a decent broker to put some added pressure, I'm awaiting the reply on my complaint but in the end got what we needed

[vescaegg]

Santander and I believe Nationwide offer 5 times single or combined salaries.

Obviously not the best idea in some cases though.