5 x Salary Mortgage

Warden8632

Hi does anyone know of a mortgage lender that will give 5 x Salary on someone earning 25k per year with a good credit rating

kingstreet

What's the loan to value?

Any credit commitments, dependents, childcare, maintenance payments, ground rent & service charges?

Warden8632

Hi Kingstreet
there are no children, dependants, or any other outgoings with the exception of household bills.

kingstreet

Depending on the loan to value and the term of the mortgage making is sufficiently affordable, there are a few lenders who do lend upto 5x income.

You would be better speaking to an independent broker who could check if this is feasible in your circumstances.

Warden8632

we did speak to an independent broker, but I'm unsure if it was he right one as I didn't feel that what she came back to us with(after illness and a lot of chasing) was any different to what she said when she was round at the house, and I have been told that the more you speak to, the more it goes against your credit rating.

MLSY

hi warden
speaking to a broker wont effect your credit rating - only if they keep doing agreement in principles with lenders
lenders have affordability calculators so a broker with your information should be able to give an idea of the maximum loan you could achieve

Broken_Biscuits

warden, loan to value will most likely be the deciding factor.

not sure if you have just accidently not included it in both the replies or if its something you are not sure about?



so you want to borrow 125k. Fair enough.

if the property is worth 130k ish and you have a 5% deposit this is less appealing to the banks than if it was worth around 165k and you had approximately a 25% deposit.

your options are pretty much
1. Save a bigger percentage if the value as a deposit.
2.go through a more specialist lender at a higher rate.
3. Continue renting. (ideally while saving)

Warden8632

the property is worth 140k and he is in it at moment, this will be to take mortgage on his own, will that make a difference

kingstreet

Is the plan to ask the existing lender to remove a party from the existing mortgage?

If it is, it's that particular lender's attitude to his personal affordability which is in question and only that particular lender can confirm that. The cost of a transfer of equity this route is £450 to £600 assuming a lender charge as well as solicitor costs.

If the plan is to remortgage to a new lender on a sole basis to repay the existing joint mortgage and to do a transfer of equity to remove the other party from the ownership, a broker should be consulted to establish if the new mortgage will be possible and the transfer of equity here will carry around £260 to £300 in legal fees, assuming the remortgage is fee-free.

Broken_Biscuits

so the loan to value is 90%?
125k borrowed and 15k as a deposit to make up the 140k asking price?

Warden8632

the problem is that although he lives in the house at the moment, he has got to buy his girl friend out the property, he earns 25k per year and needs 125k to purchase it outright, the property is worth 140k he has no savings so needs 5 x his income to purchase. there is no deposit to pay with this transaction. just a re-mortgage, which is why I was asking which lenders or if anyone knows any lenders that will do 5 x income, I appreciate that he will have to seek independent advice for the final decision, but for armed is better than nothing, or we might have to go down a different route, but not sure which way, he cant afford to borrow anymore than that I think it will be to much for him.