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Who gives a 5 times salary mortgage?

My other half and I are looking to move soon. At a developers' recently we were told that some mortgage providers give a mortgage of 5 x salary. Does anyone know the criteria for this? My partner earns more than me and with a joint mortgage we could comfortably afford the house we want. However his credit rating is not great and we'd be better off keeping our credit records separate. If I'm given 5 x my salary we can avoid a joint mortgage.

Has anyone been given this?
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  • UK007BullDog
    UK007BullDog Posts: 2,607
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    They do exist but are mainly for "professionals" i.e. doctors, dentist, solicitors, accountants, highly skilled people and graduates basically.

    You also need quite a good credit record.

    Best is to check with a whole of market broker.

    Off the top of my head I think it is Bank of Scotland and maybe Northern Rock, but with really tight criteria. And some of the fees to get this mortgage from the lenders is also high.

    There are some non-conforming lenders as well but the rates are higher.

    Maybe a lender which goes by affordability would be better as one can get more that way than by pure income multiples, but only a broker with access to the whole market and give you guidance on this.
  • Hi - I went with skipton building society and got just below 5 times my salary. They said my credit rating was low (first job since uni) but it didnt seem to effect anything - just went to head office for their approval.
    ‘It ain’t over 'til it's over’
  • Im fairly sure Alliance and Leicester offered me 5x when I was getting mine.

    Your best bet is going though an Independent Broker who doesn't charge YOU a fee (they get paid by the lender). That way you've nothing to lose.

    I know some good ones up north but not down south
  • Debt_Free_Chick
    Debt_Free_Chick Posts: 13,276
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    My other half and I are looking to move soon. At a developers' recently we were told that some mortgage providers give a mortgage of 5 x salary. Does anyone know the criteria for this? My partner earns more than me and with a joint mortgage we could comfortably afford the house we want. However his credit rating is not great and we'd be better off keeping our credit records separate. If I'm given 5 x my salary we can avoid a joint mortgage.

    Has anyone been given this?

    If you're not married and you want the property to be jointly owned or a tenants in common, you will almost certainly need a joint mortgage. If the property is to be registered in your name only, then only you need a mortgage.

    Ownership & mortgages go pretty much hand-in-hand.
    Warning ..... I'm a peri-menopausal axe-wielding maniac ;)
  • realwildone
    realwildone Posts: 144 Forumite
    It is utter madness to get 5x salary mortgage. The reason they give it to professionals like doctors is that they are unlikely to fall on hard times. If you fall on hard times with a 5x mortgage you really are in trouble.

    The builders and EA will mention them, but remember, they are not there to help you when you are struggling.
  • adr0ck
    adr0ck Posts: 2,374
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    Heritable Bank are worth trying

    https://www.heritable.co.uk
  • mi-key
    mi-key Posts: 1,581
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    Also remember that if you and your OH are currently living together, then your credit rating will already be a joint one, so leaving him off wont make any difference.

    Go to a mortgage broker, give them ALL the fact and ask them to see what options are open - could be even with his credit history you can still get a good deal, without getting stung for the really high rates on a 5x mortgage.
  • AndrewSmith
    AndrewSmith Posts: 2,871 Forumite
    There are a few lenders who may look at this.

    There are always the old favourites such as Alliance & Leicester, Nationwide etc who underwrite on affordability. However recently there have been some of the normally 'specialist' lenders now moving into the prime mortgage market bringing with them not only reasonably competetive rates without overhang, but also income assessment that will allow over 5 x income.

    It is based on a 'debt to income ratio' whereby your monthly expenditure on the mortgage and any other loans or debt must not exceed a certain percentage of your before tax monthly income. 40-50% is offered by some lenders based on the deposit available and your overall income/credit history.

    Andy
  • meanmachine_2
    meanmachine_2 Posts: 2,624
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    It is based on a 'debt to income ratio' whereby your monthly expenditure on the mortgage and any other loans or debt must not exceed a certain percentage of your before tax monthly income. 40-50% is offered by some lenders based on the deposit available and your overall income/credit history.

    Andy

    Why on earth would you want to spend 50% of your before tax income on a roof and four walls?

    And that's "moneysaving" how exactly?
  • AndrewSmith
    AndrewSmith Posts: 2,871 Forumite
    Why on earth would you want to spend 50% of your before tax income on a roof and four walls?

    And that's "moneysaving" how exactly?

    Im sorry I must have missed something.

    I don't remember actually recommending that the OP does this I am merely answering his question of whether it is possible and are there lenders who will.

    Personally I think anyone who wants to spend 50% of their pre-tax income on a property must be crazy or desparately in love with it.

    For heavens sake man don't attack me for simply giving a truthful answer to a Posters question !
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