Max mortgage borrowing
Discussion
Hi guys
What is the general rule for borrowing these days.
My wife and I earn around 55k between us. We currently have a mortgage of 145k and our house is worth 245k
We are thinking about moving soon and houses in the area we would like are around 350k. Not sure if this is going to be too much?
What is the general rule for borrowing these days.
My wife and I earn around 55k between us. We currently have a mortgage of 145k and our house is worth 245k
We are thinking about moving soon and houses in the area we would like are around 350k. Not sure if this is going to be too much?
Guv10 said:
Hi guys
What is the general rule for borrowing these days.
My wife and I earn around 55k between us. We currently have a mortgage of 145k and our house is worth 245k
We are thinking about moving soon and houses in the area we would like are around 350k. Not sure if this is going to be too much?
With the right lender, you'll be able to get to £350k.......maybe slightly higher depending on your circumstances as a whole What is the general rule for borrowing these days.
My wife and I earn around 55k between us. We currently have a mortgage of 145k and our house is worth 245k
We are thinking about moving soon and houses in the area we would like are around 350k. Not sure if this is going to be too much?
The lengths my mortgage provider went to to ensure I could afford the monthly payments when I applied to increase my mortgage was quite surprising.
Our house is valued about £320k, my current mortgage is just £60k, and I wanted to borrow just an additional £13k. Our joint salaries are close to £80k/year, so I assumed with all of that it would be a simple process and be approved quickly. However, we had to go through quite a few separate phone calls with the bank, some lasting over an hour, and they even wanted to see my pension statement and details of any overtime earnt in recent years. The process tok nearly 2 weeks before receiving the money.
It seems nowadays the onus is on the lender to satisfy themselves the borrower can afford the payments, whereas years ago it probably went more on house value & equity
Our house is valued about £320k, my current mortgage is just £60k, and I wanted to borrow just an additional £13k. Our joint salaries are close to £80k/year, so I assumed with all of that it would be a simple process and be approved quickly. However, we had to go through quite a few separate phone calls with the bank, some lasting over an hour, and they even wanted to see my pension statement and details of any overtime earnt in recent years. The process tok nearly 2 weeks before receiving the money.
It seems nowadays the onus is on the lender to satisfy themselves the borrower can afford the payments, whereas years ago it probably went more on house value & equity
LeadFarmer said:
The lengths my mortgage provider went to to ensure I could afford the monthly payments when I applied to increase my mortgage was quite surprising.
Our house is valued about £320k, my current mortgage is just £60k, and I wanted to borrow just an additional £13k. Our joint salaries are close to £80k/year, so I assumed with all of that it would be a simple process and be approved quickly. However, we had to go through quite a few separate phone calls with the bank, some lasting over an hour, and they even wanted to see my pension statement and details of any overtime earnt in recent years. The process tok nearly 2 weeks before receiving the money.
It seems nowadays the onus is on the lender to satisfy themselves the borrower can afford the payments, whereas years ago it probably went more on house value & equity
The process is the same no matter what your income, LTV or anything else......one thing doesn't over ride the other.......if you apply directly to the lender, they are entirely responsible for the advice and affordability........whereas if you apply via a broker, it's their responsibility, so no torturous two hour long cross examinations with the lender Our house is valued about £320k, my current mortgage is just £60k, and I wanted to borrow just an additional £13k. Our joint salaries are close to £80k/year, so I assumed with all of that it would be a simple process and be approved quickly. However, we had to go through quite a few separate phone calls with the bank, some lasting over an hour, and they even wanted to see my pension statement and details of any overtime earnt in recent years. The process tok nearly 2 weeks before receiving the money.
It seems nowadays the onus is on the lender to satisfy themselves the borrower can afford the payments, whereas years ago it probably went more on house value & equity
Sarnie said:
Guv10 said:
Hi guys
What is the general rule for borrowing these days.
My wife and I earn around 55k between us. We currently have a mortgage of 145k and our house is worth 245k
We are thinking about moving soon and houses in the area we would like are around 350k. Not sure if this is going to be too much?
With the right lender, you'll be able to get to £350k.......maybe slightly higher depending on your circumstances as a whole What is the general rule for borrowing these days.
My wife and I earn around 55k between us. We currently have a mortgage of 145k and our house is worth 245k
We are thinking about moving soon and houses in the area we would like are around 350k. Not sure if this is going to be too much?
Definitely speak to Sarnie (Liam)
We have used Liam for many years now for all our mortgage requirements, I wont use anyone else. Never met the bloke but the service he provides is straight forward without wasting hours of your Saturday sat in estate agents or banks.
Provide the info he needs and he can tell you whats achievable.
We have used Liam for many years now for all our mortgage requirements, I wont use anyone else. Never met the bloke but the service he provides is straight forward without wasting hours of your Saturday sat in estate agents or banks.
Provide the info he needs and he can tell you whats achievable.
Sarnie said:
..if you apply directly to the lender, they are entirely responsible for the advice and affordability........whereas if you apply via a broker, it's their responsibility, so no torturous two hour long cross examinations with the lender
Hi, just wanted to ask a question on this point you have made.So if the broker is happy with the affordability the lender will go with the broker’s recommendation? Or have I misunderstood.
And whilst I have hopefully got a moment of your time, what is your view on secondary lending (2nd charge)?
The broker has no influence over the amount the lender will lend but we know all the tricks in the book and only show the lender what they need to see.
If you go to a lender directly they have to treat you as if you are the regulator sitting in front of them, a good broker will know what info you need, what to cut through and look after you in the process without cutting out the important stuff.
If you go to a lender directly they have to treat you as if you are the regulator sitting in front of them, a good broker will know what info you need, what to cut through and look after you in the process without cutting out the important stuff.
soofsayer said:
Hi, just wanted to ask a question on this point you have made.
So if the broker is happy with the affordability the lender will go with the broker’s recommendation? Or have I misunderstood.
And whilst I have hopefully got a moment of your time, what is your view on secondary lending (2nd charge)?
The mortgage broker is responsible for affordability assessment............so when you submit the application the lender will use Office of National Statistics data to attribute what normal affordability looks like.......unless advised by the broker "that actually, this client spends £800pm on petrol" for example........if the mortgage falls into arrears, the broker is the one who was responsible for that "advice" and who any complaints would be directed to.......this is why more and more lending is done via brokers these days.......the lender still gets the business placed with them so all of the upsides and none of the downside such as being on the hook for the advice responsibility......So if the broker is happy with the affordability the lender will go with the broker’s recommendation? Or have I misunderstood.
And whilst I have hopefully got a moment of your time, what is your view on secondary lending (2nd charge)?
Not sure what view you are asking for on secondary lending?
On secondary lending...
I am looking at a house move up £200k (to £1.2). My broker has said he thinks the income multiple may be an issue with the current lender (xtra help yeah right, very computer says no) and i am in a 5 year low fixed rate, so suggested a secondary lender may be the best option but that it would be more expensive as a second charge. I was curious if that is a regular type occurrence in the market to use secondary lenders as additional funding and if thats something brokers often do? Typically how punitive are the rates?
I am looking at a house move up £200k (to £1.2). My broker has said he thinks the income multiple may be an issue with the current lender (xtra help yeah right, very computer says no) and i am in a 5 year low fixed rate, so suggested a secondary lender may be the best option but that it would be more expensive as a second charge. I was curious if that is a regular type occurrence in the market to use secondary lenders as additional funding and if thats something brokers often do? Typically how punitive are the rates?
Edited by anonymous-user on Monday 23 September 21:35
Edited by anonymous-user on Monday 23 September 21:36
soofsayer said:
On secondary lending...
I am looking at a house move up another £200k (to £1.2). My broker has said he thinks the income multiple may be an issue with the current lender (xtra help yeah right, very computer says no) and i am in a 5 year low fixed rate, so suggested a secondary lender may be the best option but that it would be more expensive as a second charge. I was curious if that is a regular type occurrence in the market to use secondary lenders as additional funding and if thats something brokers often do? Typically how punitive are the rates?
Very unusual to use second charge lending on a move. The affordability models are pretty good to stop people taking on too much, especially if interest rates were to change. You scenario is certainly not regular. If it doesn’t fit at 5.5 times income (loans and credit will reduce) then it generally will not fit UK lending. The income can be a matter of discussion if self employed / limited in the extent of what a lender will use.I am looking at a house move up another £200k (to £1.2). My broker has said he thinks the income multiple may be an issue with the current lender (xtra help yeah right, very computer says no) and i am in a 5 year low fixed rate, so suggested a secondary lender may be the best option but that it would be more expensive as a second charge. I was curious if that is a regular type occurrence in the market to use secondary lenders as additional funding and if thats something brokers often do? Typically how punitive are the rates?
soofsayer said:
On secondary lending...
I am looking at a house move up £200k (to £1.2). My broker has said he thinks the income multiple may be an issue with the current lender (xtra help yeah right, very computer says no) and i am in a 5 year low fixed rate, so suggested a secondary lender may be the best option but that it would be more expensive as a second charge. I was curious if that is a regular type occurrence in the market to use secondary lenders as additional funding and if thats something brokers often do? Typically how punitive are the rates?
1% a month for the second charge top up. I am looking at a house move up £200k (to £1.2). My broker has said he thinks the income multiple may be an issue with the current lender (xtra help yeah right, very computer says no) and i am in a 5 year low fixed rate, so suggested a secondary lender may be the best option but that it would be more expensive as a second charge. I was curious if that is a regular type occurrence in the market to use secondary lenders as additional funding and if thats something brokers often do? Typically how punitive are the rates?
Edited by soofsayer on Monday 23 September 21:35
Edited by soofsayer on Monday 23 September 21:36
not worth it.
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