Northern Rock Mortgage Calculator

overlander

Just put in our figures into the calculator combined salary of 48,000 with zero debt. So how much could i borrow £138,000 so at last sensible amounts. If this is the norm then peoplewill be able to buy a house at 3 X salary which is right.

baileysbattlebus

overlander wrote: »

Just put in our figures into the calculator combined salary of 48,000 with zero debt. So how much could i borrow £138,000 so at last sensible amounts. If this is the norm then peoplewill be able to buy a house at 3 X salary which is right.

People will be able to borrow 3 x salary, which is not the same as buying a house for 3 x salary.

the same figures plugged into Nationwide give £196k (for a FTB)-

overlander

So the bottom line is the government have now set the bottom of the house prices. The bottom will be when the average house price is 3 X Salary. The 90% max etc is irrelevant. So average salary 35000 then average house about 122,000 plus 10% deposit. So a long way down to go.

baileysbattlebus

overlander wrote: »

So the bottom line is the government have now set the bottom of the house prices. The bottom will be when the average house price is 3 X Salary. The 90% max etc is irrelevant. So average salary 35000 then average house about 122,000 plus 10% deposit. So a long way down to go.

I think someone just quoted on another thread that the new NR mortgages etc don't start for another month yet - and prior to this they weren't really lendng anyone any money - they were trying to get their mortgage book down.

And I think their website still says max lending criteria is 85% - so we will have to wait and see what their lending multiples will be

overlander

Yeah was thinking that myself as it looks like nothing has changed. We will wait and see the details but there would be a lot of bad press if they did go over the 3-4 times limit.

Conrad

MAXIMUM MULTIPLE IS 4.5 X SOLE INCOME OR 4.2 X JOINT.

Just because 1 person gets 3 x income, is meaningless.
Most people without adverse credit tell me they have a high score, afterall they've checked on those free scoring systems, but they do not seem to realise lenders use thier own unique internal systems.

We get very high quality applicants with lowish scores, which, is for a variety of reasons too involved to get into here.

Oh and they also do fasttrack (no income evidence is sought) up to 70% - so all this talk of a return to old fashioned lending from the uber pessimists is as ever a pure fantasy.

Graham_Devon

overlander wrote: »

So the bottom line is the government have now set the bottom of the house prices. The bottom will be when the average house price is 3 X Salary. The 90% max etc is irrelevant. So average salary 35000 then average house about 122,000 plus 10% deposit. So a long way down to go.

Thats a 60% drop in my area.

chucky

Conrad wrote: »

Oh and they also do fasttrack (no income evidence is sought) up to 70% - so all this talk of a return to old fashioned lending from the uber pessimists is as ever a pure fantasy.

the A rated borrowers are still getting fast tracked

baileysbattlebus

Graham_Devon wrote: »

Thats a 60% drop in my area.

It's about the same for us -

Graham_Devon

baileysbattlebus wrote: »

It's about the same for us -

Thing is, average salary is not 35k (I know it was just used for that post). Not in any part of the UK. They say its 27k. Which will bring the 60% down to around 65% drop based totally on the above post.

It's not even 20k in my area (official figures from last year). Its £19,800 roughly.

Dan:_4

Most people buy with their partner/spouse. It has always been the case that a single person wanting to buy would need to have an above average salary.