Looking to borrow x5 salary

blinko

Hi All,

I have an agreement in principal from HSBC which indicates they will lend me 4.75 x salary which is great. Unfortunately I would like to borrow x5 salary HSBC won't lend me such a high multiple. Does anyone know any lenders that would ? or if there is any way round the salary multiple, many thanks

lonestarfan

The brokers need more info to answer that.
It's not just multiples these days it's affordability. So the larger deposit/ lower LTV and the lower expenditure/commitments the better.
Need you to post info on Purchase price, deposit, defaults, any loans and what is your salary. etc

kingstreet

Some lenders may go to five times income, or higher.

However, this will be eroded by the cost of credit commitments, dependents, childcare, maintenance, ground rent & service charges, mortgage term etc.

You would be better off speaking to an independent broker who can plan the right approach, based on your individual circumstances.

amnblog

There is no definitive answer without knowing your full situation.

Key issues are:

Income level
Loan to value
Mortgage size
Dependants
Outgoings
Age
Term
Employment type
Lender

I could go on...

One for a competent broker.

d0nkeyk0ng

Halifax gave me a DIP for 5x income which was a complete surprise.

snowscreamer

My boyfriend and I borrowed 5.5x income from the Woolwich / Barclays earlier this year but we completed just before the MMR rules came in. We also had a fairly low LTV (42%).

blinko

Thanks for all your replies, the reason I asked is I thought there was a 4.5x income cap on mortgage lending.

Assuming there are lenders out there willing to lend at 5x income, is it possible to obtain such a loan by walking through the front door of a bank or only really through brokers?

kinger101

I wouldn't try approaching lots of banks and getting multiple AIPs. These leave a mark on your credit file, and could have a negative affect on getting the mortgage. If you do need 5x or more, then a broker might be advisable.

There's not that much difference between 4.75 and 5.0. Can't you just try and use the 4.75 as bargaining tool for wherever your planning on buying. E.g., I like the house, but this is my first and final offer as it's the top of my budget.