List of income multiples by lender?

tasty_snacks

Thinking of applying online for a Chelsea BS mortgage - but I want to find out the approximate income multiple before taking the credit check hit.

Just got off the phone to Furness BS - they cap at 3x, which I was surprised at given that Town & Country seemed to reckon 4x (which is what we would like) is attainable with most lenders.

Which got me to thinking, is there a resource out there somewhere which states, contemporaneously, which income multiples lenders are sticking to, assuming a good credit history etc?

ACG

Most lenders do it based on affordability now a days not income multiples. I tend to work to the tune of 4x income but getting to 5 or 5.5x is possible depending on credit scores/lenders/ltv/income etc.

As far as im aware there is no list, although i suspect brokers probably have a rough idea/list. I have a list of lenders who are or can be quite lenient under certain circumstances.

Furness are only really a bit part lender (in my opinion), good rates but criteria that really limits who they will lend to.

kingstreet

There isn't.

Lenders have their own affordability models, usually fronted by an online calculator, which, if used correctly, produces a very accurate maximum borrowing figure.

Affordability can be affected by some or all of the following;-

- income (level, type etc)
- credit commitments
- dependents
- other outgoings (maintenance, equity loan payment, shared ownership rent etc)
- term of mortgage
- loan to value
- credit score.

and often now, saying a lender will offer 4x income, simply cannot cover the complexity of the data needed to accurately gauge what's possible.

tasty_snacks

ACG wrote: »

Furness are only really a bit part lender (in my opinion), good rates but criteria that really limits who they will lend to.

That was my conclusion, too. The first thing they did was reel off a long list of restrictions. Still, with a rate of ca. 3.5% (I'm looking at 90% LTV) they can afford to be picky.

KS - I appreciate of course that the variables are many, but I would have thought that any lender will have a multiple over which they will not go north of, even on a sliding scale basis, deposit dependent. Perhaps this would only be for stellar applicants, but it would at least act as a pointer to the market as to where to focus attention.

The more detailed Chelsea online calculator is spitting out 4.5x.

Dick_here

This is a list that no lender would want to be near the top of these days, I suspect. "Come to us, we'll lend you more than anyone else" is hardly going to bring the savers rushing to their doors now, is it

kingstreet

It's similar to the way the box in the corner calculates a lender's credit score. Absolutely no way a lender would disclose how it reaches its lending conclusions.

In the old days in the insurance sector, we called that "selection against the company," where if a particular thing the insurer didn't check was discovered, everyone with that particular condition/issue would apply to that insurer.