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    • Fletchasketch
    • By Fletchasketch 12th Oct 16, 1:11 PM
    • 329Posts
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    Fletchasketch
    HSBC Massive Income Multiples for Mortgage
    • #1
    • 12th Oct 16, 1:11 PM
    HSBC Massive Income Multiples for Mortgage 12th Oct 16 at 1:11 PM
    Hello,

    Wondering what experiences people have had in terms of offered mortgages from HSBC vs. amount indicated on the calculator.

    The calculator is indicating that I can borrow around 6.5 times my annual salary, and whilst I don't need this quantity- being able to borrow between 5 and 5.5 times would be really useful and easily affordable based on current rates.

    Does anyone know how realistic the rates on the calculator are? It would also be useful to know if there are any lenders who regularly lend around 5 times income.

    Thanks!
    Debt @0% Jan '16; £9162, Jun '16 £5845, Jul '16 £3824, Aug '16 £3105
    #C25K Week 8 run1
    Student loan finally cleared!
Page 1
    • Thrugelmir
    • By Thrugelmir 12th Oct 16, 1:16 PM
    • 51,279 Posts
    • 43,084 Thanks
    Thrugelmir
    • #2
    • 12th Oct 16, 1:16 PM
    • #2
    • 12th Oct 16, 1:16 PM
    Depends on your personal circumstances. There's a considerable difference between a high multiple on a £15k per annum income and a £100k one. As the higher income has far more disposable income available.

    Lenders don't base affordability on current levels of interest rates. Regulatory guidance is currently 7%. As that's where they could be in the next 25 years.
    “A man is rich who lives upon what he has. A man is poor who lives upon what is coming. A prudent man lives within his income, and saves against ‘a rainy day’.”
    • SavingSteve
    • By SavingSteve 12th Oct 16, 1:24 PM
    • 476 Posts
    • 205 Thanks
    SavingSteve
    • #3
    • 12th Oct 16, 1:24 PM
    • #3
    • 12th Oct 16, 1:24 PM
    I've found HSBC to be a lot tighter down the line compared to what their calculator initially suggests. Same applies (in my experience) for first direct also (obvs part of the same group)
    • kingstreet
    • By kingstreet 12th Oct 16, 1:29 PM
    • 30,025 Posts
    • 15,963 Thanks
    kingstreet
    • #4
    • 12th Oct 16, 1:29 PM
    • #4
    • 12th Oct 16, 1:29 PM
    Broker calculators are normally very accurate as we use the output as part of our justification for using (or not using) particular lenders.

    People using the HSBC calculators have reported the amount they are eventually offered after the hoop-jumping is nothing like what their calculators suggest.

    To be on the safe side, assume 4.5 x income and don't forget costs such as credit, dependents, maintenance, childcare, ground rent & service charges come off that.

    If you are outside HTB, earning £35k+ and have no dependents, you will get towards 5 x with one or two lenders.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • muhandis
    • By muhandis 12th Oct 16, 1:35 PM
    • 223 Posts
    • 82 Thanks
    muhandis
    • #5
    • 12th Oct 16, 1:35 PM
    I think it's 5x tops.
    • #5
    • 12th Oct 16, 1:35 PM
    I think this might be a misunderstanding.

    To check it out, I just put in a 20k/50k/100k salary with no dependents, expenditure or debt in the HSBC detailed affordability calculator here https://portal.intermediaries.hsbc.co.uk/affordabilitycalculator/affordabilitycalculatorpage.php and it gave me a possible lending figure of 100k/250k/500k, i.e. 5x. I've not heard of an LTI figure as high as 6.5x in the recent past from a mainstream lender.

    Is this the calculator you used?

    Of course the 5x figure will be revised downwards based on dependents, credit card debt, other regular outgoings, etc.

    Hello,

    Wondering what experiences people have had in terms of offered mortgages from HSBC vs. amount indicated on the calculator.

    The calculator is indicating that I can borrow around 6.5 times my annual salary, and whilst I don't need this quantity- being able to borrow between 5 and 5.5 times would be really useful and easily affordable based on current rates.

    Does anyone know how realistic the rates on the calculator are? It would also be useful to know if there are any lenders who regularly lend around 5 times income.

    Thanks!
    Originally posted by Fletchasketch
    Last edited by muhandis; 12-10-2016 at 1:37 PM.
    • Fletchasketch
    • By Fletchasketch 12th Oct 16, 9:34 PM
    • 329 Posts
    • 551 Thanks
    Fletchasketch
    • #6
    • 12th Oct 16, 9:34 PM
    • #6
    • 12th Oct 16, 9:34 PM
    Thanks for the replies.

    Muhandis, nope it's the main calculator on the website. I do have no debts, dependents etc, have just gone back to check and it's definitely 6.5 times. It's interesting to have the intermediary calculator though.

    I'm not keen on HSBC, so it's interesting to know that they often revise down their lending figures.

    Five times would be perfect, and when I say affordable I mean based on the fact that I can currently overpay my mortgage by £1200 a month, I'm confident I can afford a little more.

    Kingstreet, would be great to know which lenders will lend up to 5 times, thanks.
    Debt @0% Jan '16; £9162, Jun '16 £5845, Jul '16 £3824, Aug '16 £3105
    #C25K Week 8 run1
    Student loan finally cleared!
    • amateur house
    • By amateur house 15th Oct 16, 11:25 PM
    • 77 Posts
    • 67 Thanks
    amateur house
    • #7
    • 15th Oct 16, 11:25 PM
    • #7
    • 15th Oct 16, 11:25 PM
    The HSBC calculator said I could borrow 5 times salary, which was higher than some of the others. Nationwide would only lend me 2 times salary, which wasn't enough so I went with HSBC. I am actually borrowing 2.75 times salary, but was told in my affordability meeting that II could have borrowed up to 5 times. I thought this was far too much as I am on quite a low salary and will be paying the mortgage over 13 years.
    • MARTYM8`
    • By MARTYM8` 16th Oct 16, 5:45 PM
    • 1,197 Posts
    • 853 Thanks
    MARTYM8`
    • #8
    • 16th Oct 16, 5:45 PM
    • #8
    • 16th Oct 16, 5:45 PM
    I tried the HSBC calculator for the fun of it.

    It said I could borrow £360k with a £90k deposit with no dependents.

    But if I had 3 kids I could still borrow £358k.

    How much do they think it costs to support 3 kids - next to nothing?
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