What multiple would you borrow?

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chucky wrote: »

do you see this applying to your local area and all property types or the property type you're looking at?

i'm curious to which area you are in.

I still believe we will see one of the major indices approach 40%, the financial meltdown which caused the first 20% drop is probably over now, however, the recession is yet to make it's presence felt, another 20% over the next 3-4 years is still on the cards, we must all remember that public spending cuts and very large tax hikes are a certainty over the next few years, which will have negative impacts on the market, we are still in the 'maxing the new credit card out phase', with little thought of the bill to come.

MrDT

chucky wrote: »

it should be the other 35% couldn't care less

76.32% of forum users won't have picked up on that
22.63% would have just kept schtum
The remaining 12.87% would have assumed it was a joke

LittleMissAspie

The prospect of borrowing 3x joint income is terrifying to me. The repayments would be nearly my whole wages so if my boyfriend lost his job I wouldn't be able to cover the bills. That's too big a risk for me to take.

I am planning for us to borrow 2x joint income. We will be able to make overpayments on that, and if either of us loses our income the other will be able to pay everything on their own.

chucky

MrDT wrote: »

76.32% of forum users won't have picked up on that
22.63% would have just kept schtum
The remaining 12.87% would have assumed it was a joke

i don't believe you - can i see a source for your stats please?
in graph format preferably

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LittleMissAspie wrote: »

The prospect of borrowing 3x joint income is terrifying to me. The repayments would be nearly my whole wages so if my boyfriend lost his job I wouldn't be able to cover the bills. That's too big a risk for me to take.

I am planning for us to borrow 2x joint income. We will be able to make overpayments on that, and if either of us loses our income the other will be able to pay everything on their own.

With that kind of prudent attitude you will do well, I'm sure. 3x joint income represents 6x single income, does anyone seriously believe that over 25 years 2 people will avoid unemployment, pregnancy, accident, illness, separation/divorce, or any combination of these, it's a high stakes gamble to take, especially if people were doing it with IR's only likely to go one way.

MORPH3US

chucky wrote: »

it should be the other 35% couldn't care less

I think that was part of the joke chucky.....

Sorry, just realised we'd covered that point already.....

IlonaRN

I am hoping to borrow ~4x salary. This would make my repayments slightly less than I currently pay in rent.

I expect my income to rise above inflation in the next few years, though, and as I'd be buying with my bf (our house, my mortgage), we'd be looking around 40% LTV mortgage.

LydiaJ

Gorgeous_George wrote: »

Personally, I'd be happy to borrow 5x or more if the interest rate was fixed at 0.5% or thereabouts.

They aren't. Otherwise I would, too.

Treadmill

My first mortgage was 7X my income, 12 years ago, I have never bee late or missed a payment, multiples are too rigid, its affordability that counts.