Best 4 or 5 year fixed rate with high income multiple lender

AndyC67

Please can anyone recommend the best 4 or 5 year fix from a lender with high income multiple/affordability criteria.

Due to a change in marital circumstances I need to remortgage from a joint to a sole mortgage using my income only.

I need to remortage for £125k probably over 21 years, the house should be valued at approx £210k. My salary is £26,016 pa and I have a lodger who pays £375 pcm (don’t think any lenders will take this income into account though). I have an excellent credit rating.

I’m currently with the HSBC and would like to have taken advantage of their Ratematcher deal but the branch mortgage advisor has told the max they would look to lend me over any term is £105k. (I find this curious as their website borrowing calculator gives me a figure of 117k if I stretch the term to 23 years, still not enough but as I'd banked with HSBC for 22 years I was hoping they might stretch their lending criteria!)

The best deals I can find with lenders that I think will lend 125k on my salary are the RBS 5 year fix at 4.99% and the Principality 4 year fix ranging from 4.69 to 4.99% depending on fees.

I’d like to take a longish term fix so that I can budget and know exactly where I stand and can sort my life out after a very fraught year or two!

Anybody got any alternative or better deals that I have missed please? Any help much appreciated

unite79

There is a broker exclusive with ITL, which will use the rental income.

herbiesjp

There may well be other options available

Do you have any other debts in the background?

Do you have any financial dependents?

Kefte

I'd personally go see a local Independant mortgage broker, some are Free [the one we use is] and they could offer some great advice based on your own situation.

AndyC67

Hi - thanks for the replies and advice so far

Herbiesjp
no, I have no outstanding loans or debts and no dependents

I have one credit card balance of £2k (taking advantage of a zero% offer) that can be cleared before submitting a mortgage application

Conrad

Andy, lenders use scoring systems, we could talk forever, but in the end you will only know whether they will lend by applying.

There are no distinct differences between lenders in terms of being able to illuminate which is likely to lend more.

People may give you ancedotes that for example say 'Woolwich' were good for them, yet on the same forum you will see complaints about the Woolwich >insert lender name<



Credit scoring is a curious beast. I've had a high scoring client be offered £77000 by Halifax, and £144,000 by Nationwide. Other clients were offered more by Halifax - wierd.

So the way I would approach this if I were you, would be to identify the best deal, and then apply*. Of course if the lender does have a lower than required mutiple then an application would be pointless.

*Some will say multiple applications can be detrimental. I have no specific evidence this is the case, only hunch it might be, but in any event, you have no choice other than to apply so such comments are all but irrelevant.

LODGER - be aware any visiting valuer will not want to see signs of a lodger.

AndyC67

Thanks I don't know any recommended local IFA's so I think I will give Town & Country a call tonight and see what they come up with

Otherwise I will give RBS and Principality a go and see what they can offer me

Conrad - re your comment on Lodgers, does having a lodger have a detrimental effect on mortgage applications then? I thought they just had to sign a waiver/indemnity of some kind to say they will vacate the property when required