does anyone lend 5x salary these days?

The_White_Horse

cheers muchly.

Owlseyes

Halifax do

michaels

Santander do

Let_Us_See

I think the word "might" should be added to both those lenders.

kingstreet

The amount will depend on the size of the income, the mortgage term, the loan to value, credit commitments, dependents, maintenance, childcare costs etc.

For example, if you put £10k a year in the Halifax affordability calculator, it returns a £29,955 maximum mortgage over 25 years. Credit etc would reduce that further. That's less than 3x income.

If you put in £30k, it returns £150k, because a lower proportion of a higher income is taken up with subsistence expenses.

I would suggest acquainting yourself with lenders' online affordability calculators where you can input your details and get an answer specific to you;-

http://www.halifax-intermediaries.co.uk/tools_and_calculators/mortgage_affordability_calculator/default.aspx

http://www.nationwide-intermediary.co.uk/calculators/aff_calc

http://intermediary.natwest.com/tools/calculators/calculator.asp

http://www.santanderforintermediaries.co.uk/calculators/affordability.aspx

gazter

The_White_Horse wrote: »

cheers muchly.

5x of today is not the 5x of yesterday... It's five times after your existing commitments. Different lenders consider different things as commitments.

Existing credit repayments are the universal one. So car loans, personal loans, credit card repayments, finance commitments etc are deducted. The monthly repayments are added up and then essentially deducted from your salary for the purposes of the 5x.
So, credit card monthly payment £50, car loan £250 and a £100 for your new couch. £400 a month, that's £4,800 annual commitment.

You earn £25,000 a year, 5x £25,000 is £125,000. However, £20,200 x5 is £101,000.

And then there are other commitments that get caught up in the calculation, these vary by lender. Children? They deduct from that total, student loans, depending on lender, that too. Making contributions to your pension fund at work? Well, thats another...

The tighter it gets the more they look into it. My building society trawled through my current account wanting to know about the details of my mobile phone contracts, my sky tv bills and my broadband costs.

hcb42

some common sense is obviously required as to what you think you can afford, and not go to the max of what lenders will allow. I have just put my details into the halifax calculator and we can borrow up to £352K, using my current mortgage term, which is 12 years (obviously subject to the usual checks.......). There is no way on earth we could afford to pay off a £352K mortgage, i would have sleepless nights even owing that sum of money.

plunt

i can vouch for it that halifax do 5x salary, ofcourse you have to fit the criteria though. recommend doing their mortgage promise to find out.