Natwest refused mortgage HELP!!

olly300

moblo wrote: »

I was advised by santander to take out a loan from them to boost my deposit. Not all lenders are being sensible

The same Santander who won't let people have interest only mortgages unless there is a 50% LTV?

moblo

Lol, that doesn't make much sense to me!?

drummer_666

hazyjo wrote: »

One one person's salary?! Jeez... that's madness. Wouldn't have thought it would be 'a lot of lenders', if any at all. Are you sure that's still the case in 2012 (and not 2007)?!

Jx

yup i'm sure,I can get over 5 times my salary and have a few lender options.

My mate has also just got a mortgage on just over 5 times her salary.

Bit mad, but means people can afford houses in more expensive areas, get a lodger so they can still have a social life and be able to scrape by on times in between not having a lodger so mortgage not at risk.

But that of course is when mortgage rates are under 4% so if you don't have a pay increase and interest rates rise in 3 - 5 yrs time you may be screwed. Esp if you decide then that you're ready to live on your own

Notmyrealname

drummer_666 wrote: »

A lot of lenders lend at 5.5 times your income.

That's what I can get - not that I'm going to as if I did that I'd have no money left over for social stuff

What you're not factoring in, which Natwest are, is if you could afford the mortgage with a 2% interest rate increase.

DVardysShadow

stinkypluff wrote: »

... We have a credit card of £4,500 and and outstanding loan of £800 also.

These debts will reduce your monthly affordability by the amount of the repayments. As mortgages are cheaper than consumer credit, the actual reduction in the mortgage available to you will be greater than the amount you are borrowing.

So paying back £5300 of credit might increase your available mortgage by £10000. Not saying this will be the amount, but you get the idea.

ruggedtoast

I just had a look at Moneysupermarket, still seem to be plenty of 4.5 salary mortgages around, in fact more than when I was looking last year.

Terrific rates too.

caeler

I'm sorry just because a lender will consider giving you 5 times your income, doesn't mean it is affordable!! Shocking.

beachie

caeler wrote: »

I'm sorry just because a lender will consider giving you 5 times your income, doesn't mean it is affordable!! Shocking.

Mine was 5.5 times my income 6 years ago. I've paid it down throughout the years and it's now down to 2.5 times my income. Best decision I have ever made as now have a nice deposit saved.

I am again looking at getting a large mortgage with rooms that I can rent out. This way I get a nice house, won't get quite so lonely living alone and won't be paying that much more.

5 times income is affordable for some just as it's unaffordable for others.