deposit;poor credit rating

MissTingle

i was wondering if anyone could clarify a friendly debate with someone. I'm currently working on my savings, and was thinking about a mortgage sometime in the future, but unfortunately i'm 'recovering' barely from poor credit rating. My friend reckons that with a 20% deposit I could walk into a mortgage lender and they would give me about 5x my wage.

I find this unrealistic, and quite frankly scary - surely irresponsible lending like this will drive the economy under?

Does anyonw know if a mortgage would be possible under these circumstaces?

switched_off

5x is available to some but not others.

You should ask a mortgage broker for a 'decision in principle' to find out where you stand. However, you may want to get a credit report and take it to the broker before he/she makes your current score worse.

You ask if its possible but imply its scary and irresponsible, do you want 5x? 4x is readily available.

MissTingle

thanks for replying, I meant 5X is scary with someone of my lending history, and I wouldn't actually be doing the mortgage thing for a few years down the line anyway.
Like i said I just wanted to clarify a friendly debtate.

switched_off

Cool.

Your history and income will be better in 2 years as well so I dont think you will have any problems. However, there was talk about lenders having to curb higher multiples in the forthcoming shake up (if it happens).

Good luck with your debate!