opinions please

robbomc

Just been turned down by hsbc for the 3.99 fixed. On the reason that salary multiples dont work out.

Tried explaing that was not the only factor as they had my bank statements and could see that we were doing well, paying are way and saving at the same time.

My question is am I better of reducing the amount i ask to borrow and put my savings or take a loan in to make up the shortfall and put this amount with the maximum they or anybody would lend me.

Does anybody know what the norm is for multiples of salary is?

Just had my whole belief that i ws moving the right way and doing the right thing absoloutly crushed by there decision.

dunstonh

Does anybody know what the norm is for multiples of salary is?

Its moved back closer to the old traditional figures although there is still some discretion but not up to the silly levels that existed at the peak.

_Andy_

No loan company (if you're honest on the application, which apparently isn't 'the done thing' on these forums) will lend you money for that reason.
The other problem is that if HSBC have declined you because of income, if you then get a loan, your outgoings will then increase meaning affordability isn't as good any more.

Out of interest, what are the salary multiples?

luckyfool

HSBC are relatively conservative (which is part of the reason why they are in a relatively strong position now and can offer better rates). There are other lenders that will consider lending up to 4.5-5* sole income.

Scaredy_Cat_3

I'm in the process of remortgaging, and have been getting quotes from different companies over the last few weeks.

Most companies have taken income details and said they will lend us around 130k, with HSBC it came out at 84k. Don't know why they came out so different to everyone else, but my advice would be to try some other lenders.

Sammy85_2

Hi

Just wanted to stick my oar in here.

No loan company (if you're honest on the application, which apparently isn't 'the done thing' on these forums) will lend you money for that reason.

We wanted to switch our current 90% LTV to our new house. We were told that although we could borrow way more than we were asking for (about 4.5x income), the criteria had since changed and the maximum we could take was now 75% LTV if we switched.

First we were offered a new deal at 90% LTV and a rate about 3% above the current one (we're on a tracker at the moment) We turned this down.

We argued that our original mortgage was taken out due to its portability, and that we werent going to pay another extortionate arrangement fee to take our what was effectively the same as our current mortgage at a higher rate.

We then were offered a loan, by the bank to make up the extra 15% that we needed to continue our current deal, we didnt ask for this option and needless to say we turned it down. The only loans we have are the mortgages and thats how we intend to stay.

In the end they agreed to let us carry across our current LTV, which is closer to 85%. It took alot of work to get this far, and had to be signed off by the regional manager of their products department.


I personnaly would plow your savings into the mortgage, firstly you stand a better chance of getting a decent rate, and secondly because it'll probably save you more money in mortgage interest than it would earn you in a savings account at the moment.

robbomc

thanks guys.

Dont know what to do. Loathed to put any more money into house as i reckon that i owe roughly half what its worth if the market was normal???

Savings are my what if money cant see me being to get to that amount again know i have kids, wife etc etc.

Our joint salarys are £ 36000 and i understand the principle of affordibility etc but we are doing it.

Missing the best deals and not being able to fix for a reasonable length of time just makes it harder.

Thanks anyway.

Anybody want to buy a house it looks like i cant afford.

opinions4u

Sammy85 wrote: »

We then were offered a loan, by the bank to make up the extra 15% that we needed to continue our current deal

Or more likely the bank employee suggested applying for a loan, rather than the bank offered you a loan.

Most credit scoring systems would automatically decline an application that said "PURPOSE OF LOAN: DEPOSIT FOR A HOUSE".

I would hazard a guess that the staff member concerned was going to key the application as being for a car, in order to hit his or her target for the month.

Credit to you for not allowing it.

figgyroo

HSBC offered me 4.46 x salary and A&L 4.24 x salary. This was for a remortgage with LTV less than 65%.