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What multiple would you borrow?
Options
LydiaJ
Posts: 8,083 Forumite
We've heard that some lenders are limiting lending to 3.5x multiple of salary, but others are offering more. This website http://www.alexanderhall.co.uk/mortgages/mortgage-calculators/how-much-can-i-borrow.html even comes up with £108k if you type in one applicant with income of £18k - ie a multiple of 6x! :eek:
But if you were buying a house, what's the biggest multiple of your salary you would feel able to borrow without scarily over stretching yourself?
But if you were buying a house, what's the biggest multiple of your salary you would feel able to borrow without scarily over stretching yourself?
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Tyre performance in the wet deteriorates rapidly below about 3mm tread - change yours when they get dangerous, not just when they are nearly illegal (1.6mm).
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Tyre performance in the wet deteriorates rapidly below about 3mm tread - change yours when they get dangerous, not just when they are nearly illegal (1.6mm).
Oh, and wear your seatbelt. My kids are only alive because they were wearing theirs when somebody else was driving in wet weather with worn tyres.
What is the maximum salary multple you wouldn't be scared to borrow? 125 votes
Less than 3x
28%
36 votes
Between 3x and 4x
48%
60 votes
Between 4x and 5x
11%
14 votes
More than 5x
12%
15 votes
0
Comments
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Well, on the face of it, I've voted for the "silly" option with more than 5x.
But that's the problem with these type of polls, there is no accounting for other personal circumstances. ie I've voted that way bearing in mind I have a large income and some good savings.
I clearly wouldn't do that with a credit card debt, a 100% mortgage and a typical income.0 -
I've voted for between 3 and 4 - just because thats the average.
When I first bought my first flat, many moons ago, I borrowed around 5.5.0 -
I voted for between 3 and 4 assuming it is a couple where both are working as there's some degree of safety net there.
If there's only a single breadwinner then I think less than 3 is probably more appopriate.0 -
JonnyBravo wrote: »there is no accounting for other personal circumstances..
Agreed.
I too have put more than 5 times salary.
I'm not able to say it wouldn't be without some ''fear'', although fear might be too strong a word for it. I expect to be nervous of our debt, and that ''nerve'' to continue to drive us to over pay.0 -
lostinrates wrote: »Agreed.
I too have put more than 5 times salary.
I'm not able to say it wouldn't be without some ''fear'', although fear might be too strong a word for it. I expect to be nervous of our debt, and that ''nerve'' to continue to drive us to over pay.
When I bought this place 2.5 years ago we were doing about 3x, now we're down to 2x, and looking back we could have afforded a fair but more, so I chose 3-4x.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
When inflation takes off big-time, having a *5 debt will be very smart as you've got a tangible asset. GET IN!0
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3x joint salary plus a good deposit would buy us a very nice house. We'd look to borrow below 3x simply as we're planning to be mortgage free early, the less debt the better really. I've seen "ok" houses that we could buy at around 1x plus deposit, but we're looking for a middle ground of "nice house that ticks all the boxes but with the minimum of debt", not just "ok". Will probably end up borrowing in the region of 2x joint.
I wouldn't say that we'd be "scared" of borrowing more, but it wouldn't make sense to take on more debt than we needed to. My thinking would probably be different if we lived in an expensive area, had lower salaries, and less savings.0 -
i dont know wether the question means what is the max you'd borrow (4x for me) or what you're going to borrow (probably a little less than 3 after my deposit). but thats on only one income
ive just checked out that if i got 5x even with a 20% deposit and with rates as low as they are currently i would be paying nearly half my disposable income to the mortgage, not to mention all the other bills. Each to their own but that is not a position i want to be in, id still like to have a life as well as a house. plus when interest rates inevitably go up, that mortgage would become unbearable. If you want a 5x income and you're prepared to make the sacrifices then fair play to you, but i wont have any sympathy for you when you're complaining you cant go on holiday, buy that new car, go to the pub etc etc.0 -
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i haven't voted because it all depends on your age too.
if you're young and your salary is expected to increase of the life of your mortgage i don't think 5 times salary is a bad thing.
if it's not expected to increase or increase in line with inflation the sensible 3 times or even 4 times multiple is more suited.0
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