Maximise borrowing for a Tier 2 visa holder

TranceNRG

Hi ladies and gents,
Hoping I could get some advice here on maximising my borrowing potential.

I'm a 35 year old Australian guy that has been living in London for over 4 years and I hold a Tier 2 general work visa which has another 4 years left on it. I'll also be able to apply for Indefinite Leave to Remain in 3 years.

My gross annual salary is about 58K and currently my deposit is sitting around 124K. I don't have any debts or other financial commitments. I believe I have a good record as well.

I have been looking at properties for a few months. I'm interested in buying a decent 1-2 bed flat in West London (preferably W5 - Ealing). The decent ones I looked at seem to be over 400K which is over my budget.

I have been in contact with a mortgage broker (a chap from Alexander Hall) and he has been quite helpful. My main goal at the moment is to maximise borrowing as I know I'll still be able to comfortably pay it back (also planning to make overpayments). Since last year's MMR, the borrowing cap seems to be 5x but most lenders having caps lower than this. Apparently being a tier 2 visa holder, my choices are limited.
I was given some bad news recently by MA - Woolwich reducing their cap from 5.25x to 4.5x and Santander reducing their cap from 5x to 4.49x for FTBs. MA said Halifax are still have a 5x cap and they lend to Tier 2 vendors. I'm not sure if there are any other lenders that have a 5X cap and I'm worried that these lenders will also reduce their cap soon.

I know that some lenders don't deal with MAs so my MA probably wouldn't recommend one for their products even it's suitable for me.
So my question to the knowledgeable posters here is, who are the lenders that will lend to someone like me that has a cap of 5x or more?

Thanks in advance.

kingstreet

As you don't have Indefinite Leave To Remain, many lenders aren't open to you.

I can't see any lender open to you offering more than 5x income.

Once any required outgoings have been entered into affordability (ground rent & service charge, credit commitments etc) your maximum borrowing will be lower than the 5x starting point.

TranceNRG

Hi Kingstreet, I'm aware that I have a limited number of lenders however most high street banks seem to offer mortgages to Tier 2 visa holders.

If I can't more than 5x I'm happy with 5x but who are these lenders (including ones that don't deal with MAs)

I'm looking to buy a period conversion so usually there's no service charge and ground rent is minimal (the ones I've looked at seem to have it around 100 pounds).

My MA is confident that I can get 5x with Halifax (290K).

TranceNRG

Bump

What lenders still have 5x cap and lend to Tier 2 work visa holders?

Cheers.

kingstreet

The brokers who post here won't name lenders, so you are dependent on another person in the same position seeing your post and replying with recent and relevant experience.

You may find it easier to appoint an independent broker of your own to source the right lender and products for your needs.

TranceNRG

Fair enough Kingstreet.

As I mentioned I already have a MA I'm thinking of going but I know some banks don't deal with MAs (Isn't HSBC one of them?). Since most lenders seem to be reducing their caps I was wondering how many lenders that will still offer up to 5x to Tier 2 visa holders.
My MA advised Halfax are still lending up to 5x but for some reason if they reduced their cap as well, it would be good to know what other options I have (could be a lender that doesn't deal with MAs).

Thanks for your reply.