Chance of 5 times salary mortgage

johnnyy

Dear all,

Joined this forum hoping to get a view on my chance of getting a mortgage. Below is my circumstances:

Buying a new build at 525k (Freehold), with 250k deposit and need a mortgage of 275k, meaning LTV of around 52.5%. The amount I am hoping to borrow is above 4.5 times of my annual salary, just shy of 5 times. My MB is telling me that it should not be a problem but just want to see if you guys know what the chances are like?

Also there has been some changes to my credit account which according to Experian and Noddle are affecting my credit rating negatively:

Had an Amex charge card for 10 months and closed this month.
Had a HSBC credit card for few years and closed this month.
Opened a new credit card with Lloyds this month.
Currently has unsecured debt of around 300 pounds

I have never missed a payment in the pass.

Based on the above, how likely would I be able to get a close to 5 times salary mortgage?

Would really appreciate some views from you guys, thanks a lot!

HappyMJ

So you earn £275k divided by 5 is salary of £55k and you take home around £3,000 a month. What term were you thinking of? If over 25 years (monthly repayments of £1,450 at 4%) then I don't see a problem with that. How many dependants? Any child support obligations? Do you have a car (or anything else) on HP? Is there anything out of the remaining £1,550 that you must spend each month apart from normal day to day living costs. Can you live on £1,550 per month and have something left over?

somethingcorporate

I would suggest your chances look reasonable but you should go with the advice on someone that knows your details specifically, i.e. your broker.

Listen to the advice you are paying for, they will be hoping to get your application through to get paid!

jacobtheamish

That shouldn't be a problem, if you do not trust the broker then find another!

Not all lenders will offer mortgages at 5 times but a lot to do with affordability too.

Worst case scenario, top it up with Help to Buy Equity Loan.

johnnyy

Thanks guys. Not that I don't trust my adviser, just want to see what other people thinks as well.

My concern was the instability in my credit accounts. I was worried that my application would be affected by those accounts closing and opening but I suppose not having any default/missed payments would rank higher than length of credit accounts?

No dependents, child, car or an other HP. 1k is around the amount I am spending every month including transport, food, entertainment and buying gadgets and stuff so I can still manage to save around 0.5k after paying mortgage of 1.5k per month.