income multiples?

londong

Hello everyone

Hoping someone can give me a bit of advice as I have tried a few online calculators but they amounts are coming out quite varied

If I have a salary of 30k then what is the max I would be able to borrow? Is it generally 4.5 X salary or does it differ from lender to lender?

or is this completely irrelevant as it is done on affordability now?

we are due to remortgage next year, amount outstanding will be about 128k and we are not looking to borrow any extra.prob i need to get my sis name off mortgage and add hubby on..but as his credit history is very poor I'm wondering if theres any chance I could do it just in my name??

I will have a pay rise next Jan, I am guessing my salary at the time of application will be just over 30k

any advice is appreciated!

Many thanks

lite_ruse

You don't need to re-mortgage necessarily, you can stay with the same lender. The process is called transfer of equity, I went through it - although it was only to remove my ex, not to add someone new.

Contemptuous

Sorry, your post is confusing - do you want to add your husband on or not?

Malmo

londong wrote: »

Hello everyone

Hoping someone can give me a bit of advice as I have tried a few online calculators but they amounts are coming out quite varied

If I have a salary of 30k then what is the max I would be able to borrow? Is it generally 4.5 X salary or does it differ from lender to lender?

or is this completely irrelevant as it is done on affordability now?

Income multiples are not how lenders calculate how much to lend. 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 income, 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.

londong

thanks for your replies so far

In answer to one of the questions, ideally we want to add my husband on to the mortgage as we both live here now and both pay towards the mortgage, but because his credit history is so bad I'm worried that no one will lend to us because of his defaults

so thats why I am trying to figure out if I could take on the mortgage solely in my name,

I guess its hard for anyone to give an answer as it depends on so many factors, I'm just getting stressed as I really need to get my sisters name off the mortgage by next year!

Lite ruse - I was under the impression that a transfer of equity involved a full application ie if I want to take sister off and leave just me on the mortgage do I not have to go through full app to see if I pass affordabilty and stress tests?

again thanks for any advice guys!

lite_ruse

They do assess affordability but I found it to be a simpler and easier process, as compared to remortgaging.

lite_ruse

Ps. I would try that first, and only if it doesn't work I'd get a broker to help with remortgaging.

londong

Thanks for ur reply LIte ruse..that's good to know. I will def look into that as an option first.

I'm with Santander at the moment and I get the impression they're one of the more stricter lenders so jusr worried that I won't pass the affordability on my own.I have 2 kids but no child care costs and will have no outstanding debt at tg time of application