Mortgage on affordabillity not just mutiples?

kimbers84

I've been looking at various mortgage for a new property & there is a HUGE difference is what all the online calculators say we can borrow (approx)....as I've recently gone part time since returning to work after maternity leave, I think our best chance of getting a decent mortgage is to use a lender who look at affordability & dont just use multiples - as we have no other debt, I expect out crdit score to be good as we do use a c/card & o/draft but they are cleared every month, have no other commitments & all bills are paid on time.

Also should have said we're looking at 85% LTV & in mutiples terms we need 4.5% x joint income, is this achieveable?

my first q is are the online calculators on individual companies accurate ( just so I know its realistic - I expect they are I just worry!)
2. why do intermediary (NW/SANTANDER/HALIFAX) say we can borrow more, than the normal sites?
3. Am I best to see a broker?

Chelsea & virgin money sites show we can borrow what we're looking for.

Any help or tips would be greatly appreciated!

Duskylady

Go and see a broker. This is where they are worth it and will be able to tell you if your likely to succeed. Check your credit score first though and your partners as mistakes on your file could scupper your plans completely.

I needed to borrow 4x joint salary on a 90% mortgage and am able to do this (fingers crossed) but would have never found the couple of lenders on my own

Also expect to get fewer options on rates etc.

kimbers84

Thankyou!
We've checked our credit files already & everything is as is should be. Its just such a tough time, based on income as I went p/time after my maternity leave but when they go to school I will be increasing my hrs again (I def can do this I've checked) but we need to get in the catchement area before we apply!
Thought we might get a rubbish rate but its really fortunate the rates are low as when a fixed rate finishes I'll be working more so if they go up we're ok!
Headaches all round! Im a born worrier!!

ACG

Most lenders now do it on affordability or a combination of income multiples and affordability - woolwich (barclays) for instance do upto 5.5x income but they also say at the end of each month you need to have £xxx amount left over - if you did not have the required amount left over you would have to reduce the borrowing down until it fit.

The calculators are pretty accurate although i do tend to find its difficult to borrow the absolute maximum they say - they usually reduce it down by a grand or 2 on the few occasions i have tried to get the maximums.

You sound like you have done a decent amount of research yourself already and are getting to grips with it. I wouldnt say you NEED a broker, but by using one they can not only find you a lender who will lend what your after but also at the best rate possible.

Chelsea building society are part of YBS - i personally avoid them like the plague after the experiences i have had with them.... my blood pressure is only just starting to go back down and the hairline grow back :P

tim123456789

It was (is) mortgage on affordability that got us into the mess we are in

the sooner we drop it as a viable economic idea, the better

tim

ACG

tim123456789 wrote: »

It was (is) mortgage on affordability that got us into the mess we are in

the sooner we drop it as a viable economic idea, the better

tim

If you dont think a mortgage should be based on affordability.... what do you think is a better idea?

kimbers84

Thanks for all your comments, Im personally glad some are based on affordabiltiy not just mutiples, as some people (agreed not all) are responsible & careful with their money. We may not earn a mega bucks but we live within our means & save for anything we need as I'd rather not pay interest!!
Can anyone recommend a good broker?

tim123456789

ACG wrote: »

If you dont think a mortgage should be based on affordability.... what do you think is a better idea?

well obviously it should at the bottom end

I referring to using it to justify ever increasing multiples

tim

ACG

Different lenders have different methods which is a good thing as it means people who may not pass with one lender do with another.

Were not allowed to recommend brokers on here - you never know if the person making the recommendation is somehow linked to that broker. My suggestion would be to avoid estate agent based brokers (they typically work for the estate agent and not you), but i would go on google and fine an independent or whole of market broker.

Both can look at the whole of the market, independent means they have to offer an option to rebate any commission paid by the lender.

kingstreet

Some lenders take into account child benefit, working and child tax credits and some don't.

You'll be taxed the cost of childcare and having dependents by some more than others.

It's impossible to say what's possible without a detailed factfind and research.

Conclusion - you need your own broker, offering whole market or independent mortgage advice...