Whats the multiplier for lending these days?

MissOptimistic

Evening!
Dh and I have always had self-cert mortgages due to our different income streams and self employment, however we are aware that these are now no longer being offered. Our current mortgage is due to expire soon and we were just wondering what was the general rule of thumb for lending in this climate, I am aware that we will probably need a 25% deposit, but what multiplier of our incomes will they lend?
Thank you in advance to anyone who is kind enough to offer a reply

GMS

Not as simple as income multiples. Lenders have differing affordability allowances.

It will depend on your income, credit commitments, credit rating, LTV etc.

What can you prove income wise? How many years accounts have you got?

herbiesjp

Different income streams and being self employed did not/ and does not mean needing a self cert mortgage.

As long as you have verifiable sources of income you should be able to get a mortgage.

Different lenders have different lending criteria in terms of what sources of income they accept, and what percentage of that income they will accept - so really you would need to look carefully at the figures you need, and then find the best way of achieving them (if at all possible).

brit1234

I'm sticking to 3.5 x salary with a 25% deposit when I buy. Could borrow more but with rates to go up and house prices set to continue to fall its best not to over extend in my opinion.

GMS

brit1234 wrote: »

I'm sticking to 3.5 x salary with a 25% deposit when I buy. Could borrow more but with rates to go up and house prices set to continue to fall its best not to over extend in my opinion.

When do you plan to buy brit? When do you think prices will have bottomed out?

Conrad

Between 2.5 and 6 x income.
Your existing lender will not need any proofs to switch product, as long as you asre not moving home that is. See if they have any delas first.
Many lenders with 25% equity will not ask for income proof, but will ask you to sign the application as being accurate and honest. Grant Shapps, the housing minster said yesterday that he would not have got his first mortgage in the current lending rules climate! I even had an Inland Revenue officer self cert once - he had other income sources like you.