Mortgage - salary multiples?
Mortgage - salary multiples?
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Discussion

Mattt

Original Poster:

16,664 posts

234 months

Sunday 30th January 2011
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Anyone know what are the current multiples being offered?

I'd be looking to put down about 20% of the house value as deposit if that makes any difference.

Sarnie

8,231 posts

225 months

Sunday 30th January 2011
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It's not quite so simple anymore..............it depends on your 'affordability', credit score etc etc but as a rough rule of thumb, use four times your income..... smile

NorthernBoy

12,642 posts

273 months

Monday 31st January 2011
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Natwest were happy to go up to six times, as long as I had a 40% deposit. In fact they mentioned this amount several times, even though I wanted far less.

splodge s4

1,519 posts

253 months

Tuesday 1st February 2011
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Most lenders use affordability now rather that multiples of income. Loans commitments, credit card balances, term of mortgage, how many dependents you have are all taken into account.

I tend to find for single incomes Natwest & Halifax are pretty generous, check online with those lenders & there should be 'affordability calculators' that you can play around with, this doesn't involve credit checks or anything like that.


V8mate

45,899 posts

205 months

Tuesday 1st February 2011
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splodge s4 said:
Most lenders use affordability now rather that multiples of income. Loans commitments, credit card balances, term of mortgage, how many dependents you have are all taken into account.
Article in this morning's paper about children affecting loan amounts. 10-20% for the usual brood and a fair bit more if you have 3+.

splodge s4

1,519 posts

253 months

Tuesday 1st February 2011
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V8mate said:
Article in this morning's paper about children affecting loan amounts. 10-20% for the usual brood and a fair bit more if you have 3+.
yes On the plus side a lot of lenders will take working families tax credits into account so that can balance it out.

Unlike years ago the size of your deposit doesn't really affect how much you can borrow anymore. It used to be if you had a large deposit your income wasnt really that important, now though the lender (& financial adviser) has to demonstrate how the mortgage is affordable what ever your income or deposit is. A 30k mortgage could be unaffordable to someone on £100 per week, even if they have 100k deposit.

It also has to be affordable after you fix or tracker period expires, how do you show that when no one has any idea what rates will be in a couple of years apart from higher than now! silly

was8v

2,011 posts

211 months

Tuesday 1st February 2011
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Try this: http://www.lovemoney.com/mortgages/

On the results page uncheck "love money partner" to get the full results.


You get better rates of interest (less risk for lender) with a larger deposit so they will lend you more.

GTO Scott

3,816 posts

240 months

Tuesday 1st February 2011
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I've got to start looking into this again soon - i'm heading quickly towards the end of the two years I wanted to be in my present house before I sold up and found a new project. When I bought the current house I secured a mortgage of £112k with 10% deposit, with both SWMBO's and my earnings taken into account at 3x each - I really didn't want to go higher, though Halifax offered up to 4.5x. This time around i'm hoping to have a 30-35% deposit if I stick with a similar size mortgage, which hopefully will give me around £150k to go hunting with, though i'm tempted to stick to looking in the same price bracket as last time (£110-130k), reduce the size of the mortgage and bring the interest rate down with a bigger deposit percentage.

That said, does anyone really know what the housing market is going to do in the next two years? silly

Matt..

3,837 posts

205 months

Tuesday 1st February 2011
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I am looking into this again now that my finances are more stable. I'm looking at a 25% deposit and ~4x multiplier. I do need to talk to some companies though, but being new to this i have no clue what i'm doing!

scotal

8,751 posts

295 months

Tuesday 1st February 2011
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Matt.. said:
I am looking into this again now that my finances are more stable. I'm looking at a 25% deposit and ~4x multiplier. I do need to talk to some companies though, but being new to this i have no clue what i'm doing!
Well you can either talk to a lender direct, use one of the sites like moneysupermarket or lovemoney or talk to a mortgage broker.

If you talk to the lender direct you can only ever get details on their products. Despite the fact they offer no advice, you will feel that you have recieved an awfl lot of advice form the inhouse sales people
If you shuffle through the online comparison sites you might get lucky and find exactly the right deal for you, or then again maybe not.
If you talk to a broker you might get an utter shark who lives to take commission (especially where FTB's are concerned.) or you might get a genuine perosn who will help you find the best mortgage out there.
A Recommendation would be your best bet, but I'd recommned talking to me, and that's kind of loaded now isn't it?




Mattt

Original Poster:

16,664 posts

234 months

Tuesday 1st February 2011
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Al - YHM smile

vescaegg

27,719 posts

183 months

Thursday 10th February 2011
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Santander offered me and my missus 5x our combined a couple of weeks ago. That was before we talked deposits, ours being 15%.

Only used about 3x in the end, to be more comfortable after paying each month.