Discussion
They should be good to go then. Can only comment on woolwich mortgages but a 25% to 40% deposit should get you on the best rates around 3% to 4% depending on what you want.
Income multipliers are around 4 times gross annual salary dependent on if they have much debt outstanding (the more debt, the less they'll lend).
Income multipliers are around 4 times gross annual salary dependent on if they have much debt outstanding (the more debt, the less they'll lend).
m4tt said:
If they are working for a bank, do they not get access to any preferential mortgage rates? Some give better rates, some just give you a subsidy for having a mortgage with them. They should also be more likely to take a lenient underwriting view.
A couple of the high street banks have really clamped down on staff loans. There are still deals available but the underwriting is as strict if not worse than is available to the man in the street. I just "won" a mortgage case on the back of this.
musclecarmad said:
have a guy earning £45k working for a bank.
buying £196k house.
he has up to 40% deposit but would like to put down as little as possible.
That's "do-able", but its circumstances dependent.buying £196k house.
he has up to 40% deposit but would like to put down as little as possible.
musclecarmad said:
was out of work past 3 months but started work with the bank last week on a permanent contract - is this a problem?
The employment gap will give some lenders the jitters, the length of service will give others the jitters. However several of the high street names will look at this sort of thing no problem.HOWEVER, he won't yet have a payslip. That could right royally screw things for him. You'll need to see if the lender will accept a letter of employment, or if they will speak to the employer direct to confirm his numbers. (Remeber the FSA will buttf
k you if you don't have evidence of income on file should there be a problem down the line.)musclecarmad said:
secondly, whats the best mortgage assuming he can put down between 25% to 40% or less if the interest rates aren't a big difference?
If i were you I'd concentrate on the employment side of things and then worry about the deposit size. He might have to suck up the deposit due to his employment record. (Rates wont be far off market leading, but they probably won't be the best.If he wants I/o I'd prepare him for a 25% deposit minimum, which is broadly speaking second tier rates.
musclecarmad said:
finally, is interest only a problem anymore?
Again, depends on which lenders will do the employment thing. Some lenders won't do i/0 over 75%, some won't do it all without a definitive repayment vehicle in place. (Sale of proeprty won't count)musclecarmad said:
scotal please help!
How's his credit looking? Lender's are tightening up again on affordability and st credit.I think you face a couple of hours of calling intermediary sevice desks and getting people to seciond guess their own criteria.
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