"Affordability" Mortgage Lenders

wellsie82

Hi,

Went to see an independent mortgage advisor this morning to get some general advice as my partner and I are looking to buy our first home together.

I've just been on the phone to a couple of lenders since I've been home who both think our best bet is to approach mortgage lenders who look at affordability rather than income multiples.

Does anyone know which lenders look at affordability?

I need to ring round some asap and get an idea of what we can borrow as the guy this morning said we're best "looking for a property first" even though we don't know how much we can borrow :rotfl: :T

Thanks in advance.

mummytofour

I would suggets that your best bet is a whole of market broker.

These ppl are pretty good and martin has mentione dthem on the site.

https://www.lcplc.co.uk

wellsie82

thanks for that, bit unsure about who l and c are and what they do

does anyone know of anywhere else other than alliance and leicester who would do mortgages based upon affordability and not income multiples

having spoken to alliance and leicester again, im advised that they won't accept an application until we've found a property so we can't even have anything agreed in principle

Simon_gloster

Hi

Nationwide and halifax use affordability for sure. if you are looking for an income stretch use Northern Rock or Alliance & Leicester.

If using affordability, ensure that all credit committments that will remain once the mortgage starts are declared on the AIP and application.

Si

netlang

HSBC used affordability for me but Nationwide would not

Simon_gloster

Nationwide use this:

If net income (sole or joint ) is between £700-£2356, times the net income by 56. ie joint monthly income after committments = £2100 x 56 = £117600 loan approx.

if your monthly net income is over £2356, times thyat figure by 65. It gives you a good idea.

Si

netlang

That would have done nicely but they refused to play ball with me.

Simon_gloster

never mind. At least you'll never go there again!!!!!

They are the most difficult lender to get a mortgage with. Get one with them and as long as you credit history remians OK you'll get a mortgage anywhere.

Si

netlang

This is the strange thing I had a mortgage with the Anglia Building Society which was bought out by Nationwide years ago, I ran my account perfectly, I was never late or missed a payment since 1984. I moved to HSBC 5 years ago and Nationwide do not want me back

I am still with HSBC who seem to be surprisingly flexible and helpful so I will stick with them until they are not competitive for me.

wellsie82

cheers for the replies folks

ive been with nationwide all my life (23 now) and they'll hardly lend us anything, my girlfriend is with halifax and they've said the same, they both use income multiples

will deffo try out northern rock, often been tempted to make investments and take out isa's through them but will certainly try them regarding an AIP and borrowing amount

Ian_W

wellsie,
When you check out NR be very aware of what you may be buying into. From this board and the comparison sites [who strangely show them as "no overhanging penalty" products] it's quite obvious that some NR products start very low but then tie you in to an uncompetitive SV rate for a few years at the end. NR aren't on their own, but they are ones that feature regularly with posters who want away but find they've heavy ERCs if they do move.
Not saying don't use them but be careful what you choose from their product range, what looks very cheap now may have you paying through the nose a few years hence.