Banks willing to lend less than 1 year ago?

pottski

I took out a mortgage a year ago via a broker for 5x my salary. My LTV was approx 60%. I am looking at moving home and have been to Santander's website and it appears they are only willing to lend just under 4x salary (My Circumstances haven't changed). I will still have around a 40% deposit, possibly 50% depending on the property I go for. Am I better off re-visiting the broker to see if he can arrange something with Santander or speak with them directly? Or is their website a clear indication on the maximum they will be willing to lend in the current climate?

herbiesjp

There are lots of variables that can affect the income multiple/affordability calculation.

It would probably be better for you to speak to a broker, as they would be able to get a better idea of what could be available to you - not forgetting the fact you may need to port your current deal.

pottski

Thanks, my current deal is portable. I spoke to the lender around 6 months ago when I was considering moving and they said their lending criteria had changed and they would not be able to lend as much ( I cannot remember how much they said but it was definately a fair bit less). Ideally I would like to port my current deal, I think I will speak to the broker. Thanks for your help.

herbiesjp

Don't forget whilst you may have the porting option, porting is not guaranteed.

It will depend on your current circumstances and current lending policy, as to whether or not it will be an option for you.

pottski

Do you know what circumstances can potentially impact the ability to port?

herbiesjp

Lots of variables really - such as lower income, lower multiples offered, children, lower score on their system etc, and lots of others as well

pottski

I see, I would like to think I am in a strong position, I was fortunate enough to have a fairly large deposit. I have no dependents and no unsecured or secured debt. My income hasn't changed either, I guess the lending criteria may have changed. I will speak to the broker though to see what he thinks, I believe he had a contact at Santander which helped with my previous application

herbiesjp

Good luck