Mortgage lenders that offer the 5 times your salary Abbey Deal???

KILOCHARLIE

Does anyone know which mortgage lenders offer the "5 times your salary" loan amounts? i.e they base your loan amount on your affordability rather than just a 3.5-4 multiple of your salary.

I know Abbey started it and it seems Alliance and Leicester have followed suit.

Does anyone know of any other Mortgage lenders that offer similar high loans?

I've spoken to london and country and they recommended the Abbey one but the A&L comes in at least £350 cheaper for me and they didn't mention that one.

Thanks if you can help!

herbiesjp

KILOCHARLIE wrote:

Does anyone know which mortgage lenders offer the "5 times your salary" loan amounts? i.e they base your loan amount on your affordability rather than just a 3.5-4 multiple of your salary.

I know Abbey started it and it seems Alliance and Leicester have followed suit.

Does anyone know of any other Mortgage lenders that offer similar high loans?

I've spoken to london and country and they recommended the Abbey one but the A&L comes in at least £350 cheaper for me and they didn't mention that one.

Thanks if you can help!

Abbey's system is still based on income mutiples, based on different income levels/deposit levels etc.

A&L have been an affordability based lender for a while now - they have not followed Abbey

Is this a joint income you are looking at? Do you have any other debts in the background? Children? What mortgage amount do you want and what deposit do you have?

KILOCHARLIE

Thanks for your reply.

I'm after a £70,000 mortgage for just me. I only earn £13,500 a year but because I have very good credit with no outgoings at all plus a huge deposit which makes the max discount of LTV available, I have been told this amount of borrowing would be fine.

I'm after a 2year fixed deal. I have spoken to London and Country and they have offered one with Abbey which works out as 5.34% with a setup fee of £350 (£600 fee, free val and £250 cashback).

I have done a little homework by myself and checked A&L and they do the same 5.34 rate but with no setup costs at all, which works out £350 better for my over the 2 years.

I just need to know what other lenders I can look at. I've tried a number of others, egg, yorkshire and northern rock but none will lend me the £70,000 as they all base their rates soley on a 3.5-4 mulitple of my salary rather than the affordability.

I've found one other lender than does this, britannia, but they work out more expensive than the abbey. Do you know of anyone else I can try?

herbiesjp

It will depend on the LTV - mortgage needed is £70k but what is the purchase price?

KILOCHARLIE

92K but with my mortgage and my deposit I should be left with 6k to do it up too.

Leon_W

Someones telling porky pies.

Abbey do not lend 5x to someone on £13500.

Read the criteria

http://www.abbey.co.uk/csgs/Satellite?c=GSProducto&cid=1157694954720&pagename=Abbey%2FGSProducto%2FGS_Categoria

KILOCHARLIE

maybe not but because of my very high deposit they said it would be fine. They even offered me £73k which is more than I need.

UK007BullDog

Without exact figures like your age outgoings incomings and the exact amount you have for a deposit it is difficult to say who will lend. It all depends on the credit score and also property type.

AndrewSmith

I smell a rat.

Abbey will not lend 5x on £13,500.

Beware that you are not being suckered into allowing you income to be overstated under 'fast track'.

Your deposit size qualifies you fot the Abbey fast track facitily where they usually will not ask for income proof.

They are, however, generally quite transparent about the income multiples and eligibility.

Leon_W

Deposit has little to do with it.

You could be buying a million pound house with a £950,000 deposit but the loan size will be no different as a lender has to be seen to be lending responsibly in relation to your salary and your ability to repay the loan.

The reason lower income multiples are used for lower salaries is that as a proportion of your wages, things like heating, lighting, food etc take up a greater proportion than if you were on a much higher salary.

You should thoroughly check ALL of the application form and make sure the facts stated are correct.

KILOCHARLIE

Thanks alot for all your help.

I will make sure everything is fine before I sign it.

Can anyone give me anywhere else I can at least ring and find out if they'll consider me? There has to be more than the Abbey, Alliance and Leicester and Britannia that are willing to talk when it comes to affordability?