Can I borrow more than 4.7x income?

deaston

amnblog wrote: »

The other tricky angle is that some Lenders consider post tax profit and some, pre tax profit.

It'd be great to know which lenders look at pre-tax profit.

csgohan4

deaston wrote: »

It'd be great to know which lenders look at pre-tax profit.

Not many I'm afraid and they usually look at your individual salary plus dividends over the last 2+ years. Everyone tax profits looks great doesn't it? But the lenders know this too and do the above to ensure affordability.

GMS

deaston wrote: »

It'd be great to know which lenders look at pre-tax profit.

A broker would be able to tell you who will look at net profit rather than salary and dividends

uncreative

Well I am employed in a position of senior management and trying to borrow £130,000 off a salary of £108,000 in a multinational company and its taken over 3 weeks and still not looking good as they now want to arrange to talk to me about travel to work, additional costs of the move etc.. so borrowing 5 times your income must put walking on water into a distant second place as far as I am concerned.....

Thrugelmir

deaston wrote: »

When I split with my partner four years ago and wanted to buy him out of the house, I went to Halifax and they offered me something like £600,000 based on my accounts (which are pretty much the same as they are now) so it's frustrating that I'm now only looking at around £380,000.

Very different world exists now compared to 4 years ago. Not least the regulatory environment under which lenders operate. Along with quality over quantity. Mortgages are no longer sold like cans of baked beans.

densol_2

Thrugelmir wrote: »

Very different world exists now compared to 4 years ago. Not least the regulatory environment under which lenders operate. Along with quality over quantity. Mortgages are no longer sold like cans of baked beans.

But oh my when they were - it allowed some of us to take big ( calculated risks ) and earn big money from house price increases ( London ) I would never have been able to afford what I have now under the new regulations. It's all different now. I'm glad though that it never damaged house price increases like we thought.

OP - do a search on your related subject on here and on this thread then read all the replies. Some brokers will pop up that clearly know their stuff and maybe PM one of those ?

deaston

uncreative wrote: »

Well I am employed in a position of senior management and trying to borrow £130,000 off a salary of £108,000 in a multinational company and its taken over 3 weeks and still not looking good as they now want to arrange to talk to me about travel to work, additional costs of the move etc.. so borrowing 5 times your income must put walking on water into a distant second place as far as I am concerned.....

I'm guessing there's more to your financial position than you have mentioned? I've managed to secure a mortgage of £425,000 from the Halifax.

Jhoney_2

Great news Deaston, congratulations!

uncreative

deaston wrote: »

I'm guessing there's more to your financial position than you have mentioned? I've managed to secure a mortgage of £425,000 from the Halifax.

Nothing else in the mix. Check my previous posts for details of situation. Can I ask what was your timescale from DIP to full offer?

You started the thread on 19/9 talking about HSBC then you have a full offer secured with the Halifax on 21/9 and you are self employed? So you abandoned HSBC on Saturday 19th, and yesterday you got a DIP, all info in, valuation, underwritten and offer out in the post in less than a working day?

I need to get myself over to the Halifax pronto.

uncreative

If you mean secured a decision in principle with the Halifax then I secured a decision in principal with Natwest for up to £440,000 on 31 August. Still not helped me get an actual mortgage for £130,000 3 weeks later but I'm convinced mine is still going through the process on plausability grounds because I am not borrowing enough and going for too low a house value.