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What happened to the Mortgage market
didgemaster
Posts: 58 Forumite
I'm trying to re-mortgage my house and I'm having difficulties. I have a loan to value rate of 49% and want to borrow 3.1 times my income. My mortage lender says I cant borrow anywhere near this!! despite paying my mortage for 5 years without issue.
This seems ludicrous but aparently its FCA rules?? :mad:
This seems ludicrous but aparently its FCA rules?? :mad:
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Comments
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3.1 x your income?
Is that before or after you've taken into account deductions for dependents, childcare, maintenance, credit, ground rent & service charges, season ticket loan etc?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Is that a sole application or joint?
We're borrowing just under 4 x our joint salaries0 -
sole application and thats before any deductions0
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Do you have any unsecured debt?0
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It's worth getting a second opinion, although I'd imagine there must be factors in play here that have reduced the amount you can borrow.I am a Mortgage BrokerYou should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it.
This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Its based on affordability. 3.1x is not pushing it but it depends on what you are spending your money on. If you debts then the repayment to those will hurt your multiples. Also things like child maintenance and some committed outgoings.
3.1x means nothing if, for example, you are paying over 40% towards debts already.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
As has been said, generally speaking you can lend around 4.5x your income.
However if you have significant amounts of debt or commitments (ie loans, HP, credit cards etc) or a football team worth of kids (or a combination of the 2) then it will reduce that down.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
didgemaster wrote: »I'm trying to re-mortgage my house and I'm having difficulties.
Are you trying to release equity if so for what purpose?0 -
I'm looking to borrow £120,000 over 20 years, Zoopla states my house is worth £245,000 - releasing equity to build an extension. First Direct are my current lender and will only lend me £93,000 over 20 years. I have been to both HSBC and Nationwide both will lend me £140,000 and nationwide said they'd let me have that over a 14 year period if I want!
I went back to First direct and asked them to check their figures and they said that they are correct :-(0 -
Sounds like First Direct are the issue, not the market.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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