Help on 5% deposit and high salary multiplier

shocky_uk

Hello,

I hope someone can help, I have searched a bit, but most of the posts I found were quiet old on this and I know the situation is ever changing!

My situation; looking to buy a place at the top edge of my borrowing, I've gone through a mortgage advisor and been approved for a very decent sum from the Halifax based on 15% deposit.

Since the property I'm now interested in is for a higher amount than I first thought I'm looking for a 5% deposit deal if possible, I understand this means I will pay a higher rate inititally but I'm prepared for that. I found Skipton BS do a 2 year fixed 95% LTV, but the multiplier they were quoting was 3 to 3.5, where as I need 5 to 5.5 in an ideal world.

Anyone recommend any 95% LTV that offer 5x or higher salary multiplier? Or failing this 90% with fee's included or waved?

Also a seperate question, since my agreement in principal is through a mortgage advisor will I now be able to go direct, I know this seems a little cheeky, but the fee is far too high and the terms seem different to what was originally discussed.

Many thanks in advance
Dan

Thrugelmir

shocky_uk wrote: »

I found Skipton BS do a 2 year fixed 95% LTV, but the multiplier they were quoting was 3 to 3.5, where as I need 5 to 5.5 in an ideal world.

This is a reflection of the real world that mortgage markets operate in.

High LTV and High Multiplier = High Lending Risk.

hoggums

5-5.5x on any deposit would be difficult to get. With 5% - virtually no chance.

You can't afford it.

Buy a cheaper house.

shocky_uk

Hi,

Thanks for taking the time to reply.

I agree about the multiplier, but I think it's more applicable on a lower salary, once you get to a certain point it doesn't affect things in the same way. I've carefully broken down the costs of everything and I can afford the property even with a 10% deposit, however I would like to keep some funds back for emergancies etc.

So failing the 5% deposit options, can anyone recommend good 10% deals or advise if Halifax are likely to deal direct after I've had an agreement in principal through a broker, but without using him?

Many thanks again, any help is appreciated.
Regards
Dan

_Andy_

shocky_uk wrote: »

I've carefully broken down the costs of everything and I can afford the property n

hi Dan

The issue though isnt whether you think you can afford it, its whether the lender does.