Income Multiple

accordpassat

Hello there, first post on here so please bear with me.

I am currently looking to move house and C&G (my current lender) have offered an amount which would not buy a rabbit hutch here in the south east. This is based on my required income multiple of 5.2 for the loan required.

Now, I understand this is way outside the norm, even though the repayments will be roughly the same as what i am paying now, infact i will be paying less as i will clear some credit card debt, thus saving on those payments.

Therefore, could anyone suggest a way forward from here. Do all lenders work on income multiples and are self certs an easy copout?

Thansk in advance for your help :rotfl:

herbiesjp

There are other lenders that will work on affordability rather than income multiples - whether 5.2 is in the realms of affordability would be down to the lender based in its calculations (there are several lenders, but all offer different ways of calculating affordability.

You do not give any figures, so it is difficult to say whether they would be an option.

Other areas that may open doors would be if your occupation was classed as a professional or if you were a graduate from a UK university.

Self cert is not a cop out, or a sure fire way of getting a mortgage. Self cert mortgages normally have tighter income multiples than full status mortgages - therefore you would need a higher income to apply. I would not advocate putting down a higher income to go down this route as it would be classed as fraud. More often than not, you will find a lender happy to accept your case based on your true details.

One proviso here, is that it is affordable to you not only now, but also in the furture.