Is it likely I will get a mortgage for 5 times my salary?

oliel

Cheesedoodles wrote: »

Barclays/Woolwich have the following lending criteria:

- No more than 2 late payments in the last year
- No more than 2 house moves in the last 3 years
- No CCJ/IVA/Bankrupcy etc
- Experian Credit score of more than 699

As for multiples. If you have more than 850 credit score they give you 5 x salary. If you have between 699 and 850 they give you 4x.

My source is the Woolwich advisor who showed me the lending criteria screen on the internal woolwich network....not sure he's meant to share that screen but he did..

You should be ok, but if I was you I would go to a Barclays Branch and give him the details of your late payments etc...he should then quickly be able to say if you're likely to be accepted for 5x.

Cheesedoodles how recent was that? And what about for joint applications?

Peelerfart

"How likely is it interest rates could go to 10% of above? How soon could this happen?"

IMO,highly unlikely in the short to medium term but I could be wrong.I'm just a punter.

roswell

donkeyman wrote: »

Are you really really sure you want to burden yourself with a huge (relative to your salary) mortgage? I assume you're quite young, possibly free and single.

Have you considered the fact that there's a whole world out there which you might never be able to see once you join the rat race and are living with that huge debt?

Yes, we all need places to live, but renting should always be considered, maybe with a few mates for some years. Imagine if your flat drops in value. Every penny of that drop is your money, not the bank's. What about if you lose your job, or if interest rates start to creep up?

How might you pay if rates doubled?

I'm not saying don't buy a place, but paying back that £80k will eventually cost you £160k over 25 years. That's £160k of your taxed income. Put another way, for the 25 years of your mortgage, over 12 of those years will be solely worked to pay for your flat.

and in 25 years Basic minimum wage could be £160 000 .. mute point really cant imagen anthing worse than renting for 25 years and then thinking yikes 25 years ago i could buy a house for half my annual income now.

maninthestreet

mark432 wrote: »

This is correct, each month I get paid about £1080. My other bills will be about £300. I will be able to afford the payments at the moment and still save about £300 a month. After I have saved up some money and if I can afford it, I would like to start overpaying the monthly payments by about 10% each month. (so about £40-£50 extra a month). This will cut down on the total interest I pay over the 25 years.

But I agree it would be difficult for me if interest rates went up to 10% or higher. On the other hand it is very likely my salary will go up to £20,000 over the next few years. I am hoping it will go up to 18,000 in a few months time as I have a salary review.

How likely is it interest rates could go to 10% of above? How soon could this happen?

Have you taken into account council tax and water rates?

mark432

maninthestreet wrote: »

Have you taken into account council tax and water rates?

Hi, yes I have.

ginvzt

Cheesedoodles wrote: »

- No more than 2 house moves in the last 3 years

Well, that would be us out!!!! In last 3 years to day (so, from November 2006), this is our 4th address!!!! In that time we bought our first house, sold it and move 100+, changed jobs (to better much paid ones), and now we are renting a second house in the new area! We better stay put then... (Not that we have any intention to buy any house at the moment)