Mortgages - 4 times income possible?

[dowie]

Hi Guys,
Any mortgage types in here? Without wanting to go into too much detail I popped into my bank today on a whim and asked what I could get - basically I was offered an amount equal to 3.3 times income. I'd thought the norm was 3.5 times - though I have relatively little credit history - had 1 credit card years ago as a student (always paid off in full) but haven't bothered with one at the moment.

I'd had a look at a flat that I could get with this amount but the location is a bit rubbish - in order to get a good location I'd need a mortgage equal to 4 times income. I'd have just over 20% deposit available so hopefully wouldn't be fleeced too much - it seems that below 80% - 75% LTV is the required amount to not get spanked on the rate.

So is it likely, in general, I'd be able to find a 4 times income mortgage these days if my own bank is only offering me 3.3?

Am single guy, living in London with no dependents and relatively little in the way of expenditure.

 

[Minxy]

I got 5 x my salary from Santander last April.

 

[Trifid]

Have a look here: http://www.moneysupermarket.com/mortgages I seem to get mortgage 'offers' well above what I could afford taking into account bills and food. My bank offered me 4.6x when I asked last year and 15% deposit was required to get a half decent interest rate with 25% being good.

 

[Pawnless Endgame]

I'm on minimum wage 25 hours per week (about £8k per year) and I got a £55k mortgage, so it is possible. I'm with Nationwide building society.

 

[dowie]

Cheers for the replies guys - I guess I'll shop around a bit... Would be nice if 55k was enough down here, I wouldn't even need a mortgage. Unfortunately I need a multiple of that, London prices are just silly.

 

[Marshstyles]

I'm on minimum wage 25 hours per week (about £8k per year) and I got a £55k mortgage, so it is possible. I'm with Nationwide building society.

really?

what are you paying each month and over how long?

if you dont mind me asking

 

[PapaLazaru]

Most places offer 4x now, though it is wise not to stretch this far. The big issue now for a first time buyer is the deposit. You can get 4x but need at least 10% deposit, and in a lot of cases, 20% to get the better rates.

 

[londonbairn]

I got 4x from Santander in August

 

[Crizzy]

It's mostly based on affordability now rather than a simple salary calculator so you should be able to find something, you will need a decent deposit though. As already suggested go to moneysupermarket or go and see a whole of market mortgage advisor. Good luck

 

[triggerthat]

Can't really comment as we got 2x with a 60% mortgage.

Are you thinking of living there or renting it out?

 

[meghatronic]

It's mostly based on affordability now rather than a simple salary calculator so you should be able to find something, you will need a decent deposit though. As already suggested go to moneysupermarket or go and see a whole of market mortgage advisor. Good luck

I came here to say exactly this.

 

[dowie]

It's mostly based on affordability now rather than a simple salary calculator so you should be able to find something, you will need a decent deposit though. As already suggested go to moneysupermarket or go and see a whole of market mortgage advisor. Good luck

I will have probably just over 25% deposit for some of the places I'm looking at and it should certainly be affordable - I'm single with no dependents, no debt, no car. My only regular outgoings are general living expenses and socialising. I think I do need to get in contact with an IFA/mortgage type etc... as I'd want recommendations on which lenders are most likely to offer what I need. I'd rather not have another credit search which turns up with another 3.3 times salary offer as I'm not sure having multiple searches within a short period is seen as necessarily a good thing.

Don't quite need 4 times tbh.. rather somewhere between 3.5 and 4

Can't really comment as we got 2x with a 60% mortgage.

Are you thinking of living there or renting it out?

Tis for me to live in - have seen a few brand new/modern 1 bedroom places that should be affordable and a few 2 bedroom Victorian house conversions so I guess if I went for the latter then I could get a lodger in but there isn't any particular need other than extra income. I should comfortably be able to afford up to 4 times salary at current rates and wouldn't likely be in trouble if rates went up significantly.

 

[dowie]

Bump - just in case anyone is interested in mortgages in future - Santander were rather happy to oblige me and promised me rather a hefty wedge - fortunately I don't actually need it all though it did mean I can get the 3.7-something times salary amount I require.

HSBC were rather stingy in terms of the amount they'd lend in comparison.

 

[Blinkz]

Looking at 5x myself, with LTV of 75%

 

[casper_uk]

Before you borrow any i would make sure you can afford the repayments at +4 or 5% as it looks like interest rates will rise and you just know the banks will pass on and hike their rates as much as possible!

 

[OspreyO]

Built some padding into it two. If your salary falls etc.

 

[CharlieAlbert]

Odd thing mortgages. I was on santanders mortgage calculator and just me it gave me 3.6 but me and my boyfriend doubling the income it was only 3.

 

[NotAGolf]

Odd thing mortgages. I was on santanders mortgage calculator and just me it gave me 3.6 but me and my boyfriend doubling the income it was only 3.

I found Santander to be odd as well. Were very stingy in comparison to the 20 or so other lenders I looked at. They were only willing to give 107, but if I said I lived up North instead of down South they would give 138k!

Sounds like the OP has already sorted his provider, but for anyone else looking, most lenders have a calculator on their website for working out 'how much can I borrow?'. From what I've seen, they seem to be fairly accurate. The 2 that I've got DIP's from have been spot on.

 

[Fusion]

I would not want to be in a position where I'm borrowing five times my income. I'm suprised that instituitions are offering this multiple really.

 

[VeNT]

lol so funny realy
there in NOWHERE i could get for 5x my income in cornwall and I'm on 18-20k