Mortgage Multiples...anyone know..?

welshlass111

Hi everyone,

I am new to the lovely world of mortgages (!) and am just starting to look around for one. My sister told me that because of the market some companies are offering four and five times a single buyers salary for a mortgage - does anyone know if this is true? And if so does anyone know which firms offer these?

Thanks !

herbiesjp

What income multiples you will be offered will depend on numerous things. Your personal circumstances, property value, mortgage amount needed, exisiting financial commitments and credit score with the lender are all just a few of the variables taken into account.

The realms of 5 times multiples are normaly, but not exclusively, for graduates or professional employees (the term professional can mean different things with differrent lenders)

welshlass111

Hmm well I was a graduate 3 years ago and Im now a Business analyst....wonder if thats covered under 'professional'!!

Will.Power_2

Your starting point shouldn't be 'multipliers'.
Work out your monthly budget, including the costs of running the property and insurance, and then calculate the mortga you can afford to repay.
Multipliers are a very rough and ready assessment of ability to repay. A lot of lenders start with multipliers and then look at more detail of your ability to make the monthly payments, taking account of other debts etc.

herbiesjp

Being a graduate can open up higher income multiples for you - however some lender will offer higher multiples based on affordability.

There will be no deifinte answer here, asit will be based on your personal circumstances - i think a chat to a good adviser may be in order.