How many times joint salary is considered the maximum?

GoldenShadow

I know this can vary wildly, please no one shoot me

Different sources say different things, and I find varying results on here, too, but would like to try and get a vague idea.

From some bank's borrowing calculators we could apparently borrow up to 220K with 53K as a combined income (I take that with a huge pinch of salt though), and other sources say more like 150K.

Is three times joint salary roughly the rule? We have about 16-17K so far and have another year of saving before we look to buy. The way prices are going up I think we will end up moving away to find a house that we feel is nice enough for the money, though

Moving 40 mins away we could find something we could accept for about 170-180K, but that will cost a fair bit more in a year. We could get something we really like for more like 200-220K but I think computer will say no based on our salaries.

Already doing OT at work to bump up deposit but my grad job on a proper salary doesn't start til Sept, so limited as to what we can do to boost income.

amnblog

Your maximum lending depends on so many factors - it would take too long to query them all here.

A lenders online calculator is only of use if you know how to use it.

Yet another one for an independent mortgage broker to handle.

Kazza_Monkey

as amnblog has said best to get a broker involved. The so called affordability calculators on Nationwide came up showing I could borrow up to £185000 when in reality they will only let me borrow £145,400 (this is with full application). The reason my affordability dropped is because I have 2 children and have only recently paid off all my credit card debts (13.5K). so a case of the man from experian he say no!!! Good Luck with it though

kingstreet

Kazza_Monkey wrote: »

as amnblog has said best to get a broker involved. The so called affordability calculators on Nationwide came up showing I could borrow up to £185000 when in reality they will only let me borrow £145,400 (this is with full application). The reason my affordability dropped is because I have 2 children and have only recently paid off all my credit card debts (13.5K). so a case of the man from experian he say no!!! Good Luck with it though

The affordability calculator on the intermediary site is 100% accurate. If you know how to input the required information, being careful to include dependents, childcare, student loans and credit to be retained and repaid you get a totally reliable output.

We establish the credit card balances at the end of the last month and if the client has recently repaid it, when doing the DIP we put the previous balance and show it in "to be repaid."

In that way we don't run the risk of undisclosed credit which is visible if it has recently been repaid and the credit system has not yet updated.

The only time the DIP output and the affordability calculator outputs are different is when there's a balance on a credit commitment we didn't now about.

mrluke

GoldenShadow wrote: »

I know this can vary wildly, please no one shoot me

Different sources say different things, and I find varying results on here, too, but would like to try and get a vague idea.

From some bank's borrowing calculators we could apparently borrow up to 220K with 53K as a combined income (I take that with a huge pinch of salt though), and other sources say more like 150K.

Is three times joint salary roughly the rule? We have about 16-17K so far and have another year of saving before we look to buy. The way prices are going up I think we will end up moving away to find a house that we feel is nice enough for the money, though

Moving 40 mins away we could find something we could accept for about 170-180K, but that will cost a fair bit more in a year. We could get something we really like for more like 200-220K but I think computer will say no based on our salaries.

Already doing OT at work to bump up deposit but my grad job on a proper salary doesn't start til Sept, so limited as to what we can do to boost income.

On similar joint wages , we borrowed 207,000

If you have a excellent credit rating and a 20%+ deposit , you will be able to borrow up to around 260k. ( natwest and Santander )

This is assuming no debt , little or no outgoings and no children

Paulaviki

Natwest offered us 4x our joint income and Nationwide 4.5x. But then they do all the affordability checks taking into account outgoings. For us this didn't change what we could borrow as we have no kids and little debt. We've not borrowed the maximum Nationwide offered but went with them in the end.

Kazza_Monkey

kingstreet wrote: »

The affordability calculator on the intermediary site is 100% accurate. If you know how to input the required information, being careful to include dependents, childcare, student loans and credit to be retained and repaid you get a totally reliable output.

We establish the credit card balances at the end of the last month and if the client has recently repaid it, when doing the DIP we put the previous balance and show it in "to be repaid."

In that way we don't run the risk of undisclosed credit which is visible if it has recently been repaid and the credit system has not yet updated.

The only time the DIP output and the affordability calculator outputs are different is when there's a balance on a credit commitment we didn't now about.

This is why brokers are so important I used the standard calculator not intermediary I did include the children but not the cards as they had been paid off I didn't think it would affect it obviously now I know different:) I don't have child care either. Still I learned my lesson the hard way but I'm pleased to say we are still able to go ahead with our purchase

GoldenShadow

Thanks for the replies everyone. Interesting to know the way it can vary

We have no dependents. OH has a loan which will be cleared before we apply for a mortgage (if not before), and then all I have is my student loan (£50 a month). No missed/late payments for either of us ever and I started using my credit card(s) a year and a bit ago as I only have a few measly direct debits that go out.

Aiming for around 15% deposit I think but that too will be subject to change depending upon the housing market around here (may try and go elsewhere if nothing that we like enough). There is too many variables at the moment but its nice to try and get a vague idea of what is possible!