New FTB mortgages with increased salary multiples released today?

spend_thrift

TMSL wrote: »

Let me guess part of the Countrywide

Not this time, although I have had a mixed experience with them in the past.

EAs should be grasping for FTBs like you.

Not treating FTBs like idiots and pushing them away.

Good on you!

Thanks!

Are you moving out of London?

No I'm moving from one side to the other. I'm currently living with my parents in the South West and this place is right on the South East border, and is actually technically Kent. Two hours on the train one way might be a slight overestimate, although it would certainly be a big chunk of my Saturday to go there and back for a wasted journey.

Crinz

to be honest, 5 or 6 times multiples are still around. just not sold as multiples. If you have the right income, outgoings and take the right product you can get a 5-6 time multiple quite easily.

example: taking a 5yr fixed rate can substantially increase the maximum amount you can borrow. 25k difference between 5yr fixed and 2yr tracker on a recent case.

spend_thrift

What was the difference in interest on monthly repayments for the 5yr fixed versus the 2yr tracker?


I've been told that one lender uses affordability criteria based on net monthly income rather than gross salary. Unfortunately I'm £9 short of the income level that unlocks the next tier of borrowing. I can get that £9 by cancelling some discretionary payments from my gross salary, but the lender needs 3 months of payslips before they will lend, which would mean not knowing if they'll lend me what I want to borrow until November at the earliest.

Yorkie1

So let me get this right: she wants you to travel 2 hours, give her all your financial information, reveal your maximum budget (as opposed to what you'd feel comfortable paying), and then show you houses that may or may not be suitable?

There are reasons why many posters here advise that you don't reveal your financial position to a person linked to the EA. Those reasons apply x10 if you're revealing them to the person whose sole interest is to make the most out of you as possible for the vendor / themselves!

spend_thrift

Yorkie1 wrote: »

So let me get this right: she wants you to travel 2 hours, give her all your financial information, reveal your maximum budget (as opposed to what you'd feel comfortable paying), and then show you houses that may or may not be suitable?

I'm beginning to think that's about the size of it, yes.

brit1234

spend_thrift wrote: »

She mentioned increased salary multiples up to 5 or even 6 times salary for FTBs with a good deposit (which I have).

Has anyone heard about these?

Highly doubt it. These mortgages are extreme risk and been phased out.

You shouldn't really consider anything over 4 times salary, otherwise you are talking subprime lending. If you can't afford save more prices are falling fast now.

betmunch

I've seen more than 8 times income recently.

I thought something was wrong and phoned to confirm it but was told it was true!

You would think they had learnt by now!

spend_thrift

betmunch wrote: »

I've seen more than 8 times income recently.

How on earth do they expect someone to afford to pay the repayments on that? :eek: