6X Joint salary mortgage AIP - is this normal?!

homer_j_3

there are lies, damn lies and statistics......

I dont think there is a need to get hung up on house prices with this thread.

I will be amazed at the day the halifax, nationwide and office of the dpm can agree on what the housing market is doing and what its likely to do!

I find it unusal for 6 x income and I have never come accross this other than with the shared appreciation mortgage that was launched earlier this year but this is affordability based!

_Andy_

Personally I don't feel that the housing market is the issue. What would concern me is the percentage of income that a 6xjoint income would take up.

gazza975526570

I was offered just slightly less than 6x income.

Needless to say i didnt take 6 x my income!!!!

kenshaz

_Andy_ wrote:

Personally I don't feel that the housing market is the issue. What would concern me is the percentage of income that a 6xjoint income would take up.

It would in the context of making a financial decision,the potential for future equity is important,I would advocate buying into a rising market.

kenshaz

gazza975526570 wrote:

I was offered just slightly less than 6x income.

Needless to say i didnt take 6 x my income!!!!

The problem is that it erodes into your standard of living,you have a wonderful house in a beautiful location ,but all your money is tied up ,some pleasure in life is required.

MortgageMamma

Royal Bank of Scotland have sometimes been known to go to six x salary on an affordability model. If the lender was an affordability based lender in my experience this is possible, however, I would never recommend anyone borrowed 6 x salary unless they had investments with which they could reduce the mortgage to a comfortable amount in the near future.

herbiesjp

kenshaz wrote:

The problem is that it erodes into your standard of living,you have a wonderful house in a beautiful location ,but all your money is tied up ,some pleasure in life is required.

Indeed you are right Ken

kenshaz

herbiesjp wrote:

Indeed you are right Ken

Hi Stef
are you speaking from personal or professional experience .?

AndrewSmith

kenshaz wrote:

The problem is that it erodes into your standard of living,you have a wonderful house in a beautiful location ,but all your money is tied up ,some pleasure in life is required.

With this I cannot disagree.

kenshaz

AndrewSmith wrote:

With this I cannot disagree.

I have no mortgage ,just a property in the UK and abroad,but experience has taught me that,to be truly happy you need cash flow .