Advice on lending amount based on salary multiples

matt74_2

Hi

I have an existing fixed term 5.5% product deal ending in the next few months and have been looking at options to fix and remortgage rather than drop onto the lenders svr at 4.5%.

The outstanding loan amount will be around £200k with 20 years left to run and I have just over 25% equity in the property based on a realistic valuation in the current market.

My salary is 34k and my partners is 20k. We both have a perfect credit history, no other loans or card debt and no children.

I have spoken to a couple of lenders with competitive products for 75% LTV on a 5 year fix, but they were both uneasy about lending more than 3.5 x joint salary. Ideally we will need something nearer to 3.8 x joint.

Previously we were considered on the basis of our affordability, rather than strict salary multiples.

Do you think it is likely that in the current financial climate, most lenders with good products are going to be looking at a best case of 3 - 3.5 x joint salary for new lending at the present time?

Many thanks

_Andy_

3.8 should be doable. Not sure who you've spoken to so far but a few spring to mind - Abbey, Halifax, HSBC, C&G.

matt74_2

Hi Andy,

Thanks for the prompt reply. I met with a mortgage advisor from HSBC during the week and basically they said we stood little or no chance of borrowing more than 3.5 x joint at the current time. I did take a quick look at Abbey online but was aware that they wanted 30% deposit on the best rates. I'll take a good look now at the others though. - Thanks again

Kavanne

Have you asked an independent advisor? someone who knows the whole market will be familar with lenders who consider higher than 3.5x multiples