First remortgage - not going as expected!

[Dutch02]

Hey Guys,

My 5 year fixed rate is coming to its end in August, L&C reached out looking to secure a deal for me ahead of time to hedge against a further increase in rates. So far so sensible.

However, the complication seems to be that because my wife isn’t working at the moment (stay at home mum whilst the kids were babies, due to go back in September) all lenders will only allow 3x salary rather than the typical 4.5.

3x salary enables me to borrow pretty much EXACTLY what I need to borrow, in principle. But my fear is that as part of due diligence maybe they find something which lowers the affordability, even slightly, and scuppers my chances.

Is 3x salary really the standard when your spouse is classed as a dependent? Or should I be looking at other brokers who perhaps have a wider net of lenders?

Thanks in advance!

[Sarnie]

I'm a broker.

No lender, lends 3x income.

Most are 4.5x or above.

You will have commitments that are reducing your affordability down to give a net figure of 3x income, kids reduce your affordability, as does a stay at home partner with most lenders but not all..........and of course if you have any credit card balances, loans, car finance student loans etc etc, they will all reduce your affordability.

Affordability differs from lender to lender.

Edited by Sarnie on Thursday 16th March 17:29

[Sarnie]

Also, lenders cannot discriminate against women for having babies, if your wife is on maternity leave then if she has her return to work details then most lenders will us her income which will help with affordability.

My experience of L&C is that they just like straight up and down vanilla cases, when it gets a bit difficult for them, which this isn't, then they tend to lose interest.....