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Lender offering 5 x income?
kazza106
Posts: 25 Forumite
I'm posting on behalf of a family member who is a first time buyer with no outstanding debt.
Are there any lenders out there who will offer more than the standard 4 x income? Ideally looking for 5 x income.
Thanks in advance.
Are there any lenders out there who will offer more than the standard 4 x income? Ideally looking for 5 x income.
Thanks in advance.
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Comments
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Whats the LTV, any other debts/CC/Loans/HP?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
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How much deposit do they have and what purchase price are they looking at?
And why oh hy oh why do they need so much debt?0 -
opinions4u wrote: »How much deposit do they have and what purchase price are they looking at?
And why oh hy oh why do they need so much debt?
Because in all probability a mortgage of 5x salary is still going to cost less than their rent.0 -
Until interest rates shoot up.ruggedtoast wrote: »Because in all probability a mortgage of 5x salary is still going to cost less than their rent.0 -
Thanks for your replys.
He will have a 10% deposit - possibly up to 15% with a bit of help from the family.
He has no outstanding debt and all credit cards are paid off each month.
The property price is 'ideally' around £145k.
K.0 -
Normal candidates are: Abbey, Halifax, Nat west, Woolwich, however they will also base on affordability, so for a "low" earner, it could be 4x, someone on £100k for easily get 5x.
Their best option is to speak to a broker, to identify the most suitable lender.I am a mortgage adviser.You 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 -
opinions4u wrote: »Until interest rates shoot up.
Except mortgages on fixed rates tend not to do that. But then internet arbiters of moral hazard usually conveniently overlook these details I find.0 -
Well if the term of the fixed rate matches the term of the mortgage, great.ruggedtoast wrote: »Except mortgages on fixed rates tend not to do that. But then internet arbiters of moral hazard usually conveniently overlook these details I find.
Except that rarely happens. Which you seem to have overlooked in your short term outlook.
Last time I saw statistics on the subject over 95% of mortgages were variable rate or fixed for less than 5 years. Yet most new mortgages have a term in excess of 20 years.
The rate shock coming off a low fixed rate on to a high SVR can be enough to cost somebody their house.
A 2.99% fix turning in to a 15.40% SVR might not be fun.0 -
Try Halifax.
They agrred in principle to lend me 5 x salary.0 -
Hsbc 4.75%0
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