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High income multiple
deano3
Posts: 234 Forumite
Afternoon,
For anyone interested I have just been offered a mortgage with Natwest for just over 4.5 times single income with 2 dependents. Deposit was 15%.
For anyone interested I have just been offered a mortgage with Natwest for just over 4.5 times single income with 2 dependents. Deposit was 15%.
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Comments
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Yep. Works out spot on on the affordability calculator for a £30k salary and 25 year term.
2.74 x for a 10 year term though, so income multiples not sensible these days!I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Im not entirely sure just over 4.5x is a high income multiple. I would say thats about where the market is.
Its possible to get 5x in certain circumstances.
I would say anything beyond 5x is where it starts to get high. The main thing is that you got what you wanted and your happy with it.
But its important to note that one person getting 4.5x income does not mean everyone will. Natwest would struggle lend me much more than 3x my income.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 -
Santander do 5x if you are a home mover. FTB is lower.
Woolwich used to do 5.5x but now 4.5x0 -
4.5 x with two dependents is pretty decent.
5 x is the starting point for some lenders, then you start chipping away due to dependents; credit; shorter term; ground rent & service charge; maintenance; childcare; season ticket loan etc etc.
Trouble is, income multiples just aren't sensitive enough. If someone aged 50 took the OP on face value and expected to get 4.5 x with two kids, a car loan and a shorter term, he'd be very disappointed.I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
I was after 4.75 but it got reduced to 4.5 due to dependents I guess, I was lucky in that I could just make the numbers work and got my offer today, thanks for all your help in previous posts.0
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I was after 4.75 but it got reduced to 4.5 due to dependents I guess, I was lucky in that I could just make the numbers work and got my offer today, thanks for all your help in previous posts.
Much depends on your overall circumstances. Multiples taken in isolation can be misleading as a guide.0
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