Salary multiples. Who would lend the most ?

Mishomeister

Which bank has the most generous lending policy nowadays on 10% deposit. HSBC for example will lend you 3.5 times. Anyone would lend more ?

kingstreet

Lending levels tend to be more about credit score than deposit. Normally, you'll get around 4.7x from Nationwide, with Abbey and Halifax topping out at 5x. You'll need to be squeaky clean and have no credit commitments or dependents, reducing affordability, to qualify.

You need to be very aware of affordability and the impact changes in circumstances might have if you plan to push towards the maximum you can borrow.

Meeper

Every circumstance is different. I have, within the past 12 months, arranged a £3.8M mortgage for an individual at 12x salary multiple.

If you earn £20k, then probably a mortgage for about £60k would be at the top of the affordability scale (3x), whereas if you earn £100k it's more likely to be £500-600k (5/6x)

Reasoning for this is that everyone has a fixed set of costs in order to live, and they have a ceiling, so when you get past a certain amount of income, a higher percentage of it is "free" income that can be spent on mortgage payments.

RenovationMan

Santander lent us 5x salary in May 2010. I think they based it more on affordability rather than a simple salary calculation.

brit1234

Mishomeister wrote: »

Which bank has the most generous lending policy nowadays on 10% deposit. HSBC for example will lend you 3.5 times. Anyone would lend more ?

I thought you would know being a bank manager?

Mishomeister wrote: »

Currently I am a bank manager and I am thinking of a career change and in particular becoming a train/tube driver, however as there are no train drivers between my friends and family I am not sure where to start. What kind of qualification would I need to achieve, how long would it take and what would it cost? Any help would be appreciated.

Is this mortgage for your shared ownership property which you want to illegally rent out?

Mishomeister wrote: »

I am thinking of buying a shared ownership apartment and then letting it out as I don't currently need place that big and would rent something out myself until I have a family. With the prices for properties in London growing all the time by the time I need a bigger place it would probably cost much more. I was wondering if anyone here does this as my main concern is that housing association people might come and check that the place is occupied by tenants.

Mishomeister wrote: »

I would be letting it out without any contract or landlord fees to foreign people from my country. So the only thing that I am afraid of is if housing association can in any way find out of me doing this. As I am planning to live there myself as soon as I get a family and I am going to honestly pay all bills, rents, mortgages etc. I am happy to BREACH terms and conditions as considering the fact they will not suffer in any way by me doing so and breaching T&C is not the same as breaching the law I am happy to take the risk. I have leaved in a flatshare for donkeys years now and I want finally to have a bit of a private life so an option with loungers won't work for me. Also I don't want to tie myself to one place to live at as it is bad for my career. My question is however if anyone who has a place on a shared ownership basis ever had any visits from housing association checking on anything.

Guys please spend you effort advising a real person, this guy is just trolling at the moment all over the site with random rubbish.

Wh05apk

There were some classic posts there, when I get 1/2 hour, might be worth reading through some of his other posts!

chopper78

Well, Mishomeister has also claimed:

I am employed as a Mortgage advisor by one of th major High street banks.

has admitted to being a software thief

I am not one of those good guys who pays their hard earned money for software.

Can u use Microsoft Security essentials if my Windows is NOT genuine?

Wanted to become a Gold speculator

I am thinking of investing in gold. I have never done it before but still believe it will provide a better return for my £5000 savings

£5k in savings back in August? Not going to get much of a mortgage anyway, you'd hit LTV restrictions before salary multiple restrictions. But you'd know that if you were a mortgage advisor *and* a bank manager.


Lots of inconsistencies.