Best Mortgage five times salary (yikes!)

EdCov · 5 June 2006 at 11:26PM

Hi All,

Please can someone help me with this...

I need a mortgage five times my salary for a house we are hopefully buying. It is not quite so mad as it sounds since my wife is on a career break, and therefore when she returns to work it will be affordable - but we can't wait for that to move house.

So I want the best rate for a five times mortgage and until the missus returns to work I only want to pay the interest.

Just to reassure anyone the mortgage will still be for less than half the value of the property, and we are used to living on little, and we do not have a car. Which is why we want an expensive house in a central location.

Many thanks for all help.

stanmoresaver · 6 June 2006 at 4:43AM

EdCov wrote:

Hi All,

Please can someone help me with this...

I need a mortgage five times my salary for a house we are hopefully buying. It is not quite so mad as it sounds since my wife is on a career break, and therefore when she returns to work it will be affordable - but we can't wait for that to move house.

So I want the best rate for a five times mortgage and until the missus returns to work I only want to pay the interest.

Just to reassure anyone the mortgage will still be for less than half the value of the property, and we are used to living on little, and we do not have a car. Which is why we want an expensive house in a central location.

Many thanks for all help.

At less than 50% LTV, I personally see nothing wrong with this as long as you go into the arrangement with your eyes open- and especially concious of the effects interest rate movements-

You need a stratagy with regard to the repayment but no there is no reason, depending on your ages, as why not arrange it on an interest only basis and then convert to repayment when your wife is back at work.

My suggestion is that you see a Whole of Market Broker to discuss and get advice but it is certain "do-able".

HTH

SS

herbiesjp · 6 June 2006 at 6:53AM

It could indeed be do-able as SS rightly says.

What figures are you looking at?

EdCov · 6 June 2006 at 6:59PM

I'm looking at around £100,000 off just over £21,000 pa, on a house around £300,000.

The basis is that if we can pay off an interest only salary and live off my income at the moment, when my wife goes back to work we can then use her salary to pay off the capital. We should find out tomorrow morning if they have accepted our offer or not.

herbiesjp · 6 June 2006 at 7:06PM

BAsed on those figures I think you will be able to find a lender to agree that for you - onlt 33% loan to value goes in your favour and lenders will offer you their highest income multiples or affordability calculations