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How many times your salary roughly?
Bluemeanie_2
Posts: 1,076 Forumite
Hi,
does anyone know the banks current salary calculation for mortgages, I know they will vary slightly but any clue? I was with Accord a few years ago who would have lent me 4.2 times my salary (£28k at the time).
Is there still a rough rule?
does anyone know the banks current salary calculation for mortgages, I know they will vary slightly but any clue? I was with Accord a few years ago who would have lent me 4.2 times my salary (£28k at the time).
Is there still a rough rule?
I'm never offended by debate & opinions. As a wise man called Voltaire once said, "I disagree with what you say, but will defend until death your right to say it."
Mortgage is my only debt - Original mortgage - January 2008 = £88,400, March 2014 = £47,000 Chipping away slowly! Now saving to move.
Mortgage is my only debt - Original mortgage - January 2008 = £88,400, March 2014 = £47,000 Chipping away slowly! Now saving to move.
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I got 5 times my basic salary back in Jan 2011. I had a large deposit put down though. That was with Natwest. I only afford it due to a lodger who pays most of my mortgage for me. Realistically without him i wouldn't have been able to afford the monthly repayments. Going for the maximum amount isn't always the best optionMortgage 1: May 2012 £90,000 April 2020: £47,000
Mortgage 2: £270,000😱 Jan 2019 £253,000 April 20200 -
Asking for a friend who is not very good with computers!
This is the situation:
One house mortgage free, that will, after moving out, generate £500 rental income PM. House is worth £90k (though would prefer this income not to be used to calculate affordability/amount to lend, due to all the horrors that can be associated with renting houses out, no tenant, tenant that doesn't pay etc.)
£40k deposit for new house. One salary is £30k a year employed, one salary £7k a year self employed. Was hoping to borrow £200k but they just wondered if that was pushing it? Or if they could get anymore?I'm never offended by debate & opinions. As a wise man called Voltaire once said, "I disagree with what you say, but will defend until death your right to say it."
Mortgage is my only debt - Original mortgage - January 2008 = £88,400, March 2014 = £47,000 Chipping away slowly! Now saving to move.0 -
A maximum is around 5 times.
However, its worth sticking to about 4-4.5x or even less if you have loans, HP etc.
But they do it on affordabilty, so if you have significant outgoings then that will come down.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
No loans or credit. Only usual household bills and a car each.
Think they may be ok with borrowing £160k then, as on their salaries' it equates to just under x4.4. They were going to sell the house that is paid off and add that equity and buy a bigger/better house. But have decided to get one in a cheaper bracket and rent the current one out for investment into their retirement etc.
Many thanks for your helpI'm never offended by debate & opinions. As a wise man called Voltaire once said, "I disagree with what you say, but will defend until death your right to say it."
Mortgage is my only debt - Original mortgage - January 2008 = £88,400, March 2014 = £47,000 Chipping away slowly! Now saving to move.0 -
Bluemeanie wrote: »Is there still a rough rule?
I would turn the question around. If mortgage interest rates were 7% would you feel comfortable with the repayments. By no means unaffordable but may impact your quality of life.0
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