Mortgage Income Multiples

nathan4473

Who offers the largest?
What is it?
Any idea what the rate is?

Thank you for anyone that responds.

Nathan4473

Thrugelmir

Much depends on your personal circumstances and salary level.

HappyMJ

nathan4473 wrote: »

Who offers the largest?
What is it?
Any idea what the rate is?

Thank you for anyone that responds.

Nathan4473

5 times income multiple is the largest I've seen but be warned that if rates increase you could be struggling. So I would get the longest fixed rate you can, go through a broker and detail all of your income and expenses and the broker will recommend a mortgage suitable for you.

If you went with 5 times income I would also suggest you have a reasonable deposit such as 25% so that rates do increase (on a variable rate and after 5 years) you have the option of switching to interest only for a short period of time and the mortgage lender should approve that. Overpay as well so you also have a buffer when rates rise. The more you overpay the better the chance they will let you have a period of interest only or have a payment holiday.

nathan4473

do you know who its with or where I might find out the mortgages with the highest income multiples?

Simon_gloster

Income multiplea are generally not used as its an affordabilitu model run on conjunction withe your credit score.

So many factors will determine what you get..martial status, kids, debt credit score, LTV.

Cant give you lenders as thats cheating, use borrowing calculators on their websites as I he found them suprisingly ball-parky accurate (not dead on but good indicators).

casslass

Hi, my partner was advised 5 times salary today. He is self employed so we were advised that it might be easier to progress under my income only. It was first mortgages that have said this but I need to go in and they then have to apparently do a soft credit check before she can tell me which lenders would do 5 times. Bit annoying so I can't give you any names of lenders. If you find out any let me know. I'm just a bit worried that the ones that do 5 times will have higher interest rates.

ACG

Very few lenders do income multiples anymore.

Its all based on affordability now really.

Simon_gloster

The amount lent doesn't affect the rate, therefore if you get the equivalent of 5x you''ll get the same rate as someone who requires 2x income.

Its the loan size against the value of thw home that determines the rate.

casslass

I was just thinking that we might only get accepted by lenders that have a higher interest rate as 5 times salary may not be accepted by some lenders. Does that make sense, not sure if I am understanding it right.