Mortgage - income amounts

richie_greenuk

Hello

How much of our joint incomes can we expect to get a mortgage for? When we first bought our house it was 3.5 times the joint income but the market has changed so much I was wondering what we can expect?
I see many are 4 times - is this common place?
Thanks

AndyWallace

it's not common place but certainly achievable. You could probably get around 5x joint.

Andy

richie_greenuk

Hi Andy,

Thanks for that.

Would we pay a higher rate for 5 x income?

what do the mortgage companies look at when judging affordability? We are in a good position as we do not have any cards or finance but do have a loan which wil be paid off with the equity.

AndyWallace

richie_greenuk wrote:

Hi Andy,

Thanks for that.

Would we pay a higher rate for 5 x income?

what do the mortgage companies look at when judging affordability? We are in a good position as we do not have any cards or finance but do have a loan which wil be paid off with the equity.

You won't necessarily pay a higher rate, but the enhanced income multiples are usually offered only with a longer term product, say 5 years fixed or something similar.

The lender I am thinking of is Accord. A 5 year fixed would be offered at a rate of 5.79% with an arrangement fee of £695 (maximum loan 95% of purchase price or valuation).

I believe, and this is from memory only - not researched, that you would need a medium or high credit score to get 5x joint.

Such a product would only be available through a broker who could discuss in detail whether or not this is affordable for you.

Just checked, a 'high' credit score is required to get 95% LTV AND 5X Joint.

HTH.

Andy.

herbiesjp

Somewhere between 4 & 5 times could potentially be achieved depeding on the whole scenario and yoru credit score with that particular lender.

There are some high street names that may be able to look at this but it depends on the numbers you are looking at - what is the purchase price, what mortgage is needed, what are your incomes?

HTH