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Halifax - Maximum 4x income for mortgages of £500k or more
Mortgage_Mark_2
Posts: 857 Forumite
Just a quick heads up if you are in the process of applying for a Halifax mortgage for more than £500k - they have today announced a maximum income multiple for the household of 4x for any mortgage of £500k or more.
I have a couple of clients who this has effected, the cut off was 8pm last night; any application submitted after that time is subject to this new lending limit.
Regardless of the rights and wrongs of whether you should be borrowing more than 4 times your income at that level, it's something to check out to make sure you aren't going to come unstuck.
I have a couple of clients who this has effected, the cut off was 8pm last night; any application submitted after that time is subject to this new lending limit.
Regardless of the rights and wrongs of whether you should be borrowing more than 4 times your income at that level, it's something to check out to make sure you aren't going to come unstuck.
I am a mortgage adviser.
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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Common sense is starting to prevail.0
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shortchanged wrote: »Common sense is starting to prevail.
Not really, if you are borrowing £500,000+ then you need to be earning £100,000+, at that level your mortgage payments will be a relatively small amount of your income compared to someone earning £20,000pa. This move is purely political.I am a mortgage adviser.You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
This is now the same for LLoyds and the rest of the group
4 X Income Max0 -
Not really, if you are borrowing £500,000+ then you need to be earning £100,000+, at that level your mortgage payments will be a relatively small amount of your income compared to someone earning £20,000pa. This move is purely political.
Whatever. The housing market needs to have a lid kept on it one way or another otherwise we end up with these out of control booms.0 -
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Thrugelmir wrote: »Not if you have 4 children at private school..........
Everything is relative. Those with high incomes have high outgoings.
Not necessarily. Even if it were true then under MMR the additional outgoings would be taken into account and reduce affordability as a result.
Somebody earning 100k plus may spend every penny of it. They MAY eat in fancy restaurants, drive a fancy car and send children to private school. On the other hand a similar salaried person may live frugally, not have a car, have no children etc.
Affordability rules should be enough. No need to add further rules.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Thrugelmir wrote: »Not if you have 4 children at private school..........
Everything is relative. Those with high incomes have high outgoings.
Sorry but how does the number of children you have at private school effect the percentage of your income the mortgage accounts for?I am a mortgage adviser.You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
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