Amount that can be borrowed.

claret_mike

Just a quick question... are there lenders that will look at % of take home pay to calculate what an affordable repayment will be rather than look at income multiples?

If so, could anyone give me an idea of how these work in more detail.

I don't want to know specific lenders etc - i.E i am not trying to get anyone to tell me where to go, I am just in early stages of planning and want an idea of what the likely mortgage amount would be given etc.

I understand that a lot of lenders will look at income multiples but want to know if there are other considerations for me?

Thrugelmir

Complete a couple of online affordability calculators that the mortgage lenders offer. This will give you the top end figure of what you could potentially borrow.

Must be said that the are only a guide though.

claret_mike

yeah, I did that and it prompted me to seek more info...

I would never contemplate going that high but when I did a calculation with Natwest, it came back at something ridiculous at nearly 6 x joint income.. Would that be feasible. I thought the days of that kind of lending would be gone.

Nationwide have come back at nearly 5 x joint income....

Yet when I do a mtg calc on MSE - it comes back at 2.5-3 x salary....?

kingstreet

If you accurately complete the online affordability calculators, the output you get is equally accurate. Before we source a case, we routinely run the details through lenders' affordability calculators, so we know the potential lenders we have available.

If you have an income of more than £22k, no credit, no dependents, no student loans, no maintenance payments and a term of more than 25 years, you'll find many lenders who will offer 5x gross annual basic salary.

claret_mike

Did both with dependents but nothing else. Which should be the case by the time I am ready to take action.. If thats correct then, thats good to know.

kingstreet

If you have dependents, then check lenders' attitudes to child benefit, tax credits etc as these may be allowable as income, as the dependents are considered an expense.

claret_mike

Nationwide asked me for figures, natwest didn't so didn't include them. Thanks for confirmation anyway...

kingstreet

claret_mike wrote: »

Nationwide asked me for figures, natwest didn't so didn't include them. Thanks for confirmation anyway...

The broker calculators are much more detailed and reliable;-

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

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