Leaders that will lend 5 x income

Wine_of_the_World

I know the general advice is not to do it but I would like to know which lenders will lend 5 x mine and my partners income.

We have seen a few properties and would like to offer on and complete before the stamp duty ends. Also, we are both living with parents (have done for over a year now) and would love to buy our own place.

We are looking at spending up to £250,000 and from saving hard and a little help from our parents will have a 25% deposit, plus £3,000 for fees.

My partner earns £35,000 per year - with a basic of £25,000 and the rest from a monthly bonus, but he has earned over £35,000 for the past 3 + years. However most leaders seem to include only 50 or 60% of a bonus in their calculations.

I am a uni student and will start working part time next week, earning £5,500 per year, plus a student bursary of £3400. Again most leaders seem to class my income as £7500.

We can afford the repayments - albeit without many luxuries or holidays but in 2 years I will be working full time and so things will be much easier then and we will overpay! Actually neither of us are bothered about take-aways, nights out etc we just want our own place:o

I’ve done a few of the ‘how much will you lend me’ calculators online and it appears Northern Rock would lead us the amount we need. However I have seen a few posts about how sloooww they are - and as our main 'selling point' for vendors will be that we can move quickly I really dont want them holding up to process - or us ending up having to pay stamp duty. So, are there any other banks that may lend us the amount we would like?

Thrugelmir

Wine_of_the_World wrote: »

plus £3,000 for fees.

Stamp duty alone will be £2,500. .....

At a multiple of over 5 times total income. You are putting yourselves at great risk if something goes wrong with your plan. Hence why you will find lenders reluctant to lend.

Suggest you lower your sights. Buying a home is best done in steps rather than taking unnecessary gambles.

Wine_of_the_World

Thrugelmir wrote: »

Stamp duty alone will be £2,500. .....

At a multiple of over 5 times total income. You are putting yourselves at great risk if something goes wrong with your plan. Hence why you will find lenders reluctant to lend.

Suggest you lower your sights. Buying a home is best done in steps rather than taking unnecessary gambles.

Thanks! We are both first time buyers so wont pay stamp duty if it goes through before March. The fees are for surveys etc.

We can afford the repayments - and in two years I will be working full time. I know we are not ideal people to lend to hence I we are keen to know which leaders will lend to us.

Wh05apk

Few lenders will accept your bursary, with your partners income again most will only allow part of it, I would suspect you could get about £170-£180k tops.

Likely lenders, Abbey, Woolwich, Nat west, Halifax.

pararct

Do you know for sure you will be working full time in two years time? Yesterday the Chancellor announced another 710,000 job cuts in the public sector over pretty much the same time frame. Whilst your profession may not be in the PS it is clear the UK economy is not in great shape, this will also have a profound effect on the private sector, even if the Euro manages to survive which looks more remote every day.

Lower your sights you have all your working life to achieve your dream home. If you over reach yourselves now you could lose everything you have built to this point and have to start again from scratch.

Wine_of_the_World

pararct wrote: »

Do you know for sure you will be working full time in two years time? Yesterday the Chancellor announced another 710,000 job cuts in the public sector over pretty much the same time frame. Whilst your profession may not be in the PS it is clear the UK economy is not in great shape, this will also have a profound effect on the private sector, even if the Euro manages to survive which looks more remote every day.

Lower your sights you have all your working life to achieve your dream home. If you over reach yourselves now you could lose everything you have built to this point and have to start again from scratch.

I'm confident I will be working - I'm training to be a health professional and yes, there are cuts in the public sector which will have an impact on the jobs available - although I understand my profession is / will be in demand. However the job I will be doing part time will be able to take me on full time - so I'll have that as a back up option! Although the pay isnt great at least it will be more money coming in than nothing!

Hughesy84

You start working next week?? Unlikely many will lend to you until you have proof of income for a few months.

Halifax might be your best bet - they offered me 5x my salary

shortchanged_2

Hughesy84 wrote: »

.

Halifax might be your best bet - they offered me 5x my salary

Yes but is that for a single income?

The norm is usually less for a joint income mortgage.

Wh05apk

shortchanged wrote: »

Yes but is that for a single income?

The norm is usually less for a joint income mortgage.

Not with the bigger lenders.

Wh05apk

Hughesy84 wrote: »

You start working next week?? Unlikely many will lend to you until you have proof of income for a few months.

Halifax might be your best bet - they offered me 5x my salary

Many lenders will accept a contract and start date.

shortchanged_2

Wh05apk wrote: »

Not with the bigger lenders.

No wonder this country is in the sh*t state it is then.