Advise for applicant on low income

cs1983

Hello,

I currently live at home and am looking to move into a home of my own!

My salary is £17,500 basic.

I believe that usually a mortgage provider will be prepared to lend 3.5 - 4x my salary. I have a £10k deposit ready at the moment, no outstanding debts etc and am keen to find out what value property I may be able to afford.

I've set up appointments with a few providers this week but I'm wondering if anyone has any insight into which lenders are known to be on the higher end of this scale and would be prepared to lend to someone on my salary.

Thank you for reading.

Malmo

Income multiples are not relevant anymore.

Try the online affordability calculators provided by lenders to get an idea of how much you may be able to borrow based on your income and commitments.

csgohan4

You might want to check your credit files at all 3 agencies to avoid any unexpected surprises.


What price are you looking?


You might want to see if a broker can help you

AliceBanned

Malmo wrote: »

Income multiples are not relevant anymore.

Try the online affordability calculators provided by lenders to get an idea of how much you may be able to borrow based on your income and commitments.[/QUOTE


Surely income multiples are still relevant? Just wondered why you say this?

csgohan4

AliceBanned wrote: »

Malmo wrote: »

Income multiples are not relevant anymore.

Try the online affordability calculators provided by lenders to get an idea of how much you may be able to borrow based on your income and commitments.[/QUOTE


Surely income multiples are still relevant? Just wondered why you say this?

If you can afford 50k mortgage but you blow 20 k a year on loans, betting, spending, that's a problem for the lender

AliceBanned

csgohan4 wrote: »

AliceBanned wrote: »

If you can afford 50k mortgage but you blow 20 k a year on loans, betting, spending, that's a problem for the lender

Betting, spending and loans have been a problem for lenders anyway, especially massively since the credit crunch, but income multiples obviously have to be a major part of the decision. The OP said he had no debts.

AliceBanned

OP: He or she, sorry!

cs1983

I am a he!

Thanks for the comments so far, maybe I should close down my betting accounts, they never get used anyway.

I'm a still a little puzzled by how big a factor my salary is in all this.

Can anyone recommend which lenders might see me in a better light than others, i.e those that would favour low monthly outgoings even though my salary is relatively low.

Thanks again, really appreciate the advise!

maninthestreet

Where are you located? How many sub-£80K properties are there for sale in your area?

Malmo

AliceBanned wrote: »

Malmo wrote: »

Income multiples are not relevant anymore.

Try the online affordability calculators provided by lenders to get an idea of how much you may be able to borrow based on your income and commitments.[/QUOTE


Surely income multiples are still relevant? Just wondered why you say this?

How much a borrower can be advanced isn't simply a function of a crude income multiple. It may have been a significant factor in the past, but we are in a completely different regulatory climate now. Yes there are upper ceilings imposed by the regulatory bodies that are based on a multiple of salary, but that has little to do with how much a lender will lend. You will not find a lender that will state how much they lend simply based on a multiple of income.

TBeckett100

I wouldn't waste hours sitting with the bank mortgage people. Go on Woolwich intermediaries or Halifax intermediaries and look at their mortgage affordability calculators