4.5 times joint salary possible?

nej

Ok, this probably does get asked a lot, but....

Can we get 4.5 times our joint salary (approx £55k) from anywhere? I know Abbey and one or two others say they do it, but you have to earning over £60k, so we are close but no cigar...

We'd have about £20-25k deposit (hard to say exactly, as it depends on sale price of house, minus selling fees, stamp duty etc which will have to come out of our equity, along with repayment of all current debts), and are looking at a house for about £280-£290k, so our deposit is < 10%.

All help gratefully received.

ukbondraider

Accord Mortgages 5x joint available if you take out the longer term fix which I have said many times should be the only type of mortgage people should be taking out in this climate.

So in short 5.59% if you take out the 10 yrs fix.

Because your deposit is less than 10% you will have to pay a higher lending charge but this shouldnt stop you as the rate is one of the most competitive you will find for your situation and market conditions.

tulips

I think you will be able too. I phoned up london and country yesterday with a similar joint amount (60) and was offered upto 270! Nutters. You are going to be terrible exposed at such multiples though and you should think long and hard about whether its the right thing to do.

topher_2

Northern Rock offered me 4.6 times joint salary if I had a good credit rating. I went for a decision in principal - they offered up to 5.1 times and said that more was available if needed.

I wouldn't borrow that much though - too much risk for me and the payments would have been huge!

Pink.

Post by pinkmilady reported. Please don't click on the link.

nej

Thanks all for your suggestions.

The reason for the high borrowing is basically because of the stupid prices where we live, and the fact that I'm going to have to use a lot of our equity for paying off 2x car finances, loan and 3 cards. We'll actually be far better off than we are now even with a bigger mortgage by a few hundred quid.

And I'd be looking for a long-ish term fix deal (10 years is quite scarily long though... I got caught on a high rate once for a couple of years watching everyone get great new deals, but 5.59% isn't bad) so I can budget easily. Still scary numbers though! Gotta move - it's a school thing....

Did any of you who have had this success(?!) with lenders have less than 10% deposit?

Oh, and when you phone up to ask if they can do it and get an agreement in principle, do they credit-check there and then? I can see that if I call several lenders my file would be searched many times and that doesn't look good, right?