Whats the largest mortage we could get?

conradmum

I think it was assumed he wasn't paying tax because he said he has no evidence to prove this. If he had declared it he would have tax due statements, surely?

MortgageMamma

it depends on how long he'd been doing it, whether he'd kept the statements, and because of cost deductions etc an inland revenue statement/bill does not always proove exactly how much somebody is earning.

marty1888

MortgageMamma wrote:

No, its not northern rock, good guess though.

so are we playing a guessing game or are you just gonna tell us?Lol

Alternatively, a PM would be helpful!!


Thanks,

Marty

MortgageMamma

Im not telling! How the heck do you guys think us brokers make living? Not by telling all!

infobank

Funnily enough, according to a table I have seen, Northern Rock will lend 4.1 x your combined incomes (it becomes 4.4 x when your joint incomes exceed £100,000) if you opt for a mortgage product of any type as long as it is not a fixed rate for 5 years or more.
However, if you do opt for a fixed rate of 5 years or more they will increase this multiple to 4.6 times your current joint incomes.
So, thats 4.1 x 54,300 = £222,630
Or 4.6 x 54,300 = £249,780 (if you go for a fixed rate of 5 years or more)

Now then, Intelligent Finance have a bit of a reputation for large mortgage approvals.
They say no income multiples are applied, and each case is treated on merit, but 5 x income has been known (an A1 credit score is needed, a good sized deposit, and be classed as "proffesionals")

Actually, just realised I didn;t include the bonus in the above N Rock calc .......... they tale 50% of all acceptable income, so 50% of 1500 = 750
add that to 54,300 = 55050
x 4.1 = £225,705
0r x 4.6 = £253,230

There you go .... hope that helps.
You may want to check my maths ... I tend to have fat finger syndrome on my calculator!

jonnymeldrum

I agree also.

InMyDreams

MortgageMamma wrote:

it depends on how long he'd been doing it, whether he'd kept the statements, and because of cost deductions etc an inland revenue statement/bill does not always proove exactly how much somebody is earning.

Well that's all very easily solved, given the date! Get your self assessment form in asap! TBH, when I read the OP, my thought was also 'why can't (s)he prove it?' I also tutor and have had to use self assements as proof of my income (and I don't even earn enough to pay tax on them... just). Maybe the OP just didn't realise that it would be an acceptable proof? (In my case it's my sole income as my full-time job is mummying.) As for cost deductions, I don't know about the OP, but I struggle to think of any justifyable cost deductions that aren't negligible. Any ideas anyone? ;-)

IMD.

herbiesjp

There are a few lenders that can look at the multiples suggested.

However as MM states, you should approach a whole of market mortgage adviser. They will then assess what is best for you based on your circumstances.

No self respecting adviser would start posting lender names on an open board for fear of someone then claiming it to being advice!

infobank

Herbie,
to be "advice" it has to be both "lender and product specific".

To mention a lender is classed as "generic or strategic" advice by the Financial Services Authority

http://www.fsa.gov.uk/pubs/policy/ps186_vol2.pdf
Annex B Ammendments to Gen

Any self respecting broker should know that :-)

I'm more concerned with the post before yours with a hyper link to a web site, which seems to be from a non FSA regulated lead generation firm :-(

herbiesjp

infobank wrote:

Herbie,
to be "advice" it has to be both "lender and product specific".

To mention a lender is classed as "generic or strategic" advice by the Financial Services Authority

http://www.fsa.gov.uk/pubs/policy/ps186_vol2.pdf
Annex B Ammendments to Gen

Any self respecting broker should know that :-)

(

I have to disagree.

And in the FS world it is covering yourself from unscrupulous people, who may take what you post as a recommendation despite what the FSA says.

An adviser should not post any details, even as much as a lender name, without complying to the FSA requirement of Know Your Customer i.e carry out a fact find.

Without that, I'm sorry, but I will not post lender's details