Mortgage Rate Rises

413x said:
I dunno what it is.
But when I was talking to the lloyds mortgage advisor (and filling in forms) she asked all about costs, dependants etc.

We had so little costs they called back and questioned how our affordability could be so high!
-no kids, no loans, no pcp car, no TV licence. Our fixed "by choice" obligations are zero except for council tax, mortgage etc.
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I remember doing ours and got into things like spotify or how much we spend on food and whatnot.. I guess we breezed through because they didn't ask anything but my paranoid head wanted to add notes like "obviously the mortgage is the most important and we cut our cloth accordingly".

It'll be easy to sneer and say some people are stupid or entitled enough to not but I would assume for the most part if you have no loans/credit cards etc then anything else you'd change if you needed to?

Or is having multiple streaming services as I seem to have ended up with a sign of bad character nowadays?
 
When we searched for mortgage in principals mid-2021, we were getting offered around 280k with a combined gross income of about 65k so that's right around the 4.5x mark, and I assume was a fairly "automated" response.

By the time come that we got a house etc., we needed to borrow about 200k and were told "that'd never be an issue" even after taking into account the full circumstances, such as student loans, car PCH etc. but that multiplier would be around 3x so way less risk.
 
Jesus wept.. I just did ours and yes halifax are saying it would be just under 4.5x our joint including bonuses. I guess we'd get into their definition of regular bonuses which seems to be an oxymoron to me, I need to put in the performance to get the bonus.. it's never guaranteed.

But even so... that feels.. irresponsible tbh.

Like right now on a non bonus month we spend just over 25% of our total take home on the mortgage. That's at almost exactly half of the max I was just given so presumably if we doubled the loan we double the payment.

Problem is thats currently at about 2.3%.. over 6% that payment would jump to just under half our total take home. That's nuts, very uncomfortable.
 
I just put ours in out of intrigue.

No way would I borrow that much. Wtf!

You can borrow up to
467k
This seems absolutely ridiculously high

:o
 
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Under these new interest rates 4.5x salary is way too much borrowing to be comfortable.

If the banks dropped this in line with what is considered reasonable (20-30% gross salary) the market would absolutely tank.

I think first time buyers are so desperate to get out of renting they are willing to go further. Much better to pay of your own mortgage than someone elses even if its costing a good chunk of your take home pay.
 
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413x said:
I just put ours in out of intrigue.

No way would I borrow that much. Wtf!

You can borrow up to
467k
This seems absolutely ridiculously high

:o
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Barclays just came back with a figure of £675,000 for my partner and I if we wanted to buy a £1m/house. Thats a chonker of a mortgage that we couldn't afford at 6%. Crazy.

Thats bang on 4.5x our combined salaries though. Could afford it at 2%... come on BoE, throw me a fricking bone.
 
fez said:
Barclays just came back with a figure of £675,000 for my partner and I if we wanted to buy a £1m/house. Thats a chonker of a mortgage that we couldn't afford at 6%. Crazy.

Thats bang on 4.5x our combined salaries though. Could afford it at 2%... come on BoE, throw me a fricking bone.
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I popped mine into nationwide.
That figure above is 5.5x. I guess that's the enhanced amount for special jobs?


But it's crazy. My take home is 3100. And at that level

"your monthly payments would be 2700 at 400k"

Yeah... No.


So little wiggle room!
 
413x said:
I popped mine into nationwide.
That figure above is 5.5x. I guess that's the enhanced amount for special jobs?


But it's crazy. My take home is 3100. And at that level

"your monthly payments would be 2700 at 400k"

Yeah... No.


So little wiggle room!
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Have to assume there would be more due diligence if we actually tried to get that amount. Its the sort of take home % that would ruin you in a few months if one of you lost your job or couldn't work for a while.
 
413x said:
I recall seeing something that some jobs (doctors?) could get a 5.5x rate? Maybe teachers too? But don't quote me on the that.
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Might be.

Way back in the 90s I could get double the normal multiplier as a trainee accountant, like 5x. (Specialist lender however, not mainstream)
In effect vastly underpaid compared to medium term salary as a trainee. Hell of a gamble though if it went wrong!
 
kevman said:
I see - thought from reading your response that you had entered your job and it spat out the 5.5x....
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No, this was just one of those earnings only calcs.

This was nationwide. Maybe they are just slightly more irresponsible than other lenders at 4.5x?

3k mortgage when you have a joint income of 85k.. I mean if banks are lending this no wonder people are screwed on 6pc rates.



Now I'm going to see what house I can get for 450k+120k of the equity we have.

A 570k house in rural Wales will come with a lot of land.



Few months time.. I'm living Dlockers life! :D
 
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Well. For a little more... 9.1 acres!
itvSm82l.jpg
 
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