Income multiples

Avicov

Morning all

I was wondering if anyone knows which banks offer higher income multiples for a joint mortgage? Ideally I am looking at x5 salary.

Our combined income is around £115k.

We are looking to buy a property that isn't new build.

Deposit of around 30%.

Are some lenders known for being a little more generous than others?

I'm currently with Halifax on our current house but their online calculators don't seem as generous as say Santandar or Natwest for example.

Thanks all.

shimano

Santander do 5x. Woolwich used to do 5.5x, but now 5x

Senior_Paper_Monitor

Do they ? ....


Woolwich:

Scenario Max Income Multiple


1. maximum standard income multiple 4.5


2. LTV greater than 85% and income < = £50K 4


3. Debt to income ratio > = 20% 4

shimano

Sorry, yes meant 4.5x!

kingstreet

You can no longer use income multiples.

You need to input your details in each selected lender's affordability calculator, adding the necessary outgoings as appropriate.

At best "5x" is the starting point to which things like dependents, childcare, student loans, ground rent & service charges, credit etc have to be deducted.

Avicov

Thanks for the replies. Very helpful.

Has anyone done an agreement in principle with Halifax recently on-line? Is it a relatively straight forward process? At what stage might the bank ask for details of bank statements, salary slips etc? Would that be when you apply for the actual mortgage application stage?

Senior_Paper_Monitor

As Kingstreet indicates ... If you are you looking for the maximum lending then the actual base multiple is not the 'be all and end all' - different lenders treat different components of both income (ie bonuses as one example of several possibles) and expenditure (i.e pension contributions as one example of several possibles).


I regularly price up comparisons where the lender with the lower base multiple will actually lend more than the one with the higher.

kingstreet

I just sit doing calculators until I have about fifteen saved in the client file, then I have to go and sit in a dark room, swaying back and forth for an hour or two...

shimano

And the criteria can change quickly too. Like for Woolwich, who dropped from 5.5 to 4.5, but didn't take into account bonuses in the affordability, and now they do.

Always easiest to go onto the affordability calculators on the intermediary sites and also look at the lending criteria in detail. You will get a very good view of where you sit with any lender from that (I did anyway)

amnblog

Annual bonus cannot be used for affordability with Barclays - just another in the enormous list of Lenders anomalies on criteria.

Avicov

How reliable is the santander for intermediaries website?

I have put all the figures in and it seems to come out much higher than Halifax intermediaries by over £100k!

Does Santander have a better ratio?

I am getting about £466k with Halifax and £585k with Santander