egernal questions about affordability and income multiples...

bumpybecky

We remortgaged our current property in October 2008 (previous fixed rate deal was ending) and wanted to borrow £85k on house value approx £160k.

At the time the lender (HSBC) got very funny about DH's income not being enough, despite the mortgage being less than 2.5x his annual salary. In the end they insisted on including our child tax credits and child benefits (all in my name) before they'd agree the mortgage.

We had no other credit card debts, no CCJs, no late payments on the existing mortgage, we have savings and investments that add up to more than 6 months salary as an emergency fund, nothing dodgy at all :A

Now we're possibly looking at moving house, DH's income has gone up slightly but not hugely. The new mortgage would be around 3.25 - 3.5x DH's salary (not including the tax credits or child benefits) and the mortgage would be around 55% of the new property value.

I know we can afford the new mortgage as he's currently paying extra pension contributions voluntarily and if we stopped those the savings would more than equal the mortgage increase.

So was the hassle we had last time due to credit crunch timing? are lenders still being very fussy about affordability? or will they go just on income multiples? (we'd had mortgages previously with virtually no questions asked once we showed pay slips!) does it vary much from lender to lender?

thanks for any replies

bumpybecky

I used to be able to spell. Clearly having children has broekn that part of my brain. I hope it makes sense!

dimbo61

Bumpy a reference to the 4 kids so you are a stay at home mum and your OH,s income plus benefits ( under threat for the con/lib government) has to support 6 people.
I am with Yorkshire Building Society who are quite family friendly or go see a "whole of market broker" for help.
Good luck