Chances of me borrowing 4.25 x salary?

brownyboy

Hi all,

I've accepted an offer on my house, and have seen another property I am interested in.

I was wondering whether there is any chance anyone would lend me approx 4.25 x my salary of £34k (about 145k)? For the past 7 years I have also had a minimum of £1k bonus each year if that helps....

I'm 33, live on my own, have no dependents, and I have no loans. I have one credit card which I pay off in full each month. I'm lucky that I get phone and internet paid for by work so my only outgoings are standard things like utilities/house insurance/petrol.

With the equity from my house and savings I would have approx £65k and I was led to believe from the estate agent I could get the house for £210k. That would be around 69% LTV.

Do I have chance, or am I wasting my time and should move on.

Thanks!

ACG

You shouldnt have a problem.

Some lenders like HSBC might be a little funny about it but i would say the majority of high street lenders would look to allow that. Go and have a mess around with some of the calculators on their websites (theyre pretty accurate) or speak to a broker.

brownyboy

Thanks for the quick reply.

I have had a look at some of the online calculators, some just ask for yor salary and say you can get up to 4 x this amount. Others ask for much more detailed information and I have had values ranging up to £152k so I wasnt sure which to use.

If I speak to a lender can they give any indication of my chances or would I just have to apply and see? Obviously I would not want to have lots of declined applications on my file.

I'll have to see if anyone knows a good broker in my area. Last time I got a mortagage was 8 years ago and I got a similar multiplier then extremely easily, things have changed a lot since then!

ACG

Income Multiples are used more of a guide now, its all done on affordability.

The calculators are pretty accurate, i dont tend to have any problems with them so long as you enter the correct info (check your bank statements for how much you spend on bills etc rather than estimating).

The amount lenders will offer does vary by quite a bit in some circumstances so it is possible some will not lend you enough and others will lend you far more than you need.

gazter

brownyboy wrote: »

Thanks for the quick reply.

I have had a look at some of the online calculators, some just ask for yor salary and say you can get up to 4 x this amount. Others ask for much more detailed information and I have had values ranging up to £152k so I wasnt sure which to use.

If I speak to a lender can they give any indication of my chances or would I just have to apply and see? Obviously I would not want to have lots of declined applications on my file.

I'll have to see if anyone knows a good broker in my area. Last time I got a mortagage was 8 years ago and I got a similar multiplier then extremely easily, things have changed a lot since then!

Have a look at some of the intermediary sites for different lenders. These are the sites brokers use, they have more detail and detailed requirements. They are open sites.

4.25 shouldnt be too hard. I have recently got a mortgage with my local building society for just under 4.5x a joint income.

amnblog

Get a broker to assist you.

There are three or four lenders who have generous affordability calculations that will do this for you.

Do not, as a previous poster suggests, try to use lenders intermediary sites. Unless you know how the use the calculators on these sites and the vagaries of using them you will get it wrong.

monty-doggy

I am 31, income £30k, deposit of £50k. I was offered £165k by. The woolwich.

What area are you in?

brownyboy

monty-doggy wrote: »

I am 31, income £30k, deposit of £50k. I was offered £165k by. The woolwich.

What area are you in?

South Wales

monty-doggy

Ah. My broker won't cover there! Get a good one on recommendation, they will know the best lenders for your needs.

gazter

brownyboy wrote: »

South Wales

Principality will do that, and pretty good rates as well.

gazter

amnblog wrote: »

Get a broker to assist you.

There are three or four lenders who have generous affordability calculations that will do this for you.

Do not, as a previous poster suggests, try to use lenders intermediary sites. Unless you know how the use the calculators on these sites and the vagaries of using them you will get it wrong.

I havent come across anything even remotely complicated on the intermediary sites, just a bit more detail and a fuller understanding of the lending criteria of the different organisations. The mortgage calculators are essentially the same as are the affordability.

It is clear that the perception must be that 'mortgage brokers' are a 'mixed ability' group, thus the site is generally easy to navigate and pretty much everything explained.

When you pay for a broker, I understand you are paying for more than the ability of the individual to read back the information that you could access yourself, you are paying for the experience of knowing which lenders will look at which sticky situations better.