Three mortgage questions

ferox666

Wonder if anyone can help me out here...

1) There seem to be some good attractive rates with a 25% deposit (which I have) but one of the properties I am considering would involve a mortgage 3.9 times my salary after putting down a 25% deposit - are many of the best mortgages lending at this level or is mostly restricted to 3.5 times salary now?

2) If applying for a mortgage, I have a credit card which is paid off in full each month, but would the mortgage credit search show that I "owed" the unbilled balance and thus potentially reduce amount of mortgage credit available? Am I better just paying off the card before applying rather than waiting a couple of weeks until statement date?

3) If I get a 3 yr fixed rate, and then revert to a higher SVR after the 3 yrs, would the new monthly payment in 3yrs be based on the original amount of mortgage borrowed now or the amount outstanding after the 3 yrs paid (i do appreciate not too much capital would have been paid off after 3 yrs). I'd hope the latter but can never be too sure with banks etc...

thanks

kingstreet

No. Income multiple isn't a factor in the rate you get. Only the LTV influences that. Within 4x income, you should have the pick of the rates.

It makes no difference. If you add the card details on the application with the current balance and tick the "to be repaid on completion" box it will be ignored for affordability.

After three years of a twenty-five year repayment mortgage, you'll owe 92%* of the original amount. Your new payment will be calculated using the balance then, the follow-on rate and the remaining term.

*Using an actual Nationwide KFI.