HSBC Massive Income Multiples for Mortgage

Fletchasketch

Hello,

Wondering what experiences people have had in terms of offered mortgages from HSBC vs. amount indicated on the calculator.

The calculator is indicating that I can borrow around 6.5 times my annual salary, and whilst I don't need this quantity- being able to borrow between 5 and 5.5 times would be really useful and easily affordable based on current rates.

Does anyone know how realistic the rates on the calculator are? It would also be useful to know if there are any lenders who regularly lend around 5 times income.

Thanks!

Thrugelmir

Depends on your personal circumstances. There's a considerable difference between a high multiple on a £15k per annum income and a £100k one. As the higher income has far more disposable income available.

Lenders don't base affordability on current levels of interest rates. Regulatory guidance is currently 7%. As that's where they could be in the next 25 years.

SavingSteve

I've found HSBC to be a lot tighter down the line compared to what their calculator initially suggests. Same applies (in my experience) for first direct also (obvs part of the same group)

kingstreet

Broker calculators are normally very accurate as we use the output as part of our justification for using (or not using) particular lenders.

People using the HSBC calculators have reported the amount they are eventually offered after the hoop-jumping is nothing like what their calculators suggest.

To be on the safe side, assume 4.5 x income and don't forget costs such as credit, dependents, maintenance, childcare, ground rent & service charges come off that.

If you are outside HTB, earning £35k+ and have no dependents, you will get towards 5 x with one or two lenders.

muhandis

I think this might be a misunderstanding.

To check it out, I just put in a 20k/50k/100k salary with no dependents, expenditure or debt in the HSBC detailed affordability calculator here https://portal.intermediaries.hsbc.co.uk/affordabilitycalculator/affordabilitycalculatorpage.php and it gave me a possible lending figure of 100k/250k/500k, i.e. 5x. I've not heard of an LTI figure as high as 6.5x in the recent past from a mainstream lender.

Is this the calculator you used?

Of course the 5x figure will be revised downwards based on dependents, credit card debt, other regular outgoings, etc.

Fletchasketch wrote: »

Hello,

Wondering what experiences people have had in terms of offered mortgages from HSBC vs. amount indicated on the calculator.

The calculator is indicating that I can borrow around 6.5 times my annual salary, and whilst I don't need this quantity- being able to borrow between 5 and 5.5 times would be really useful and easily affordable based on current rates.

Does anyone know how realistic the rates on the calculator are? It would also be useful to know if there are any lenders who regularly lend around 5 times income.

Thanks!

Fletchasketch

Thanks for the replies.

Muhandis, nope it's the main calculator on the website. I do have no debts, dependents etc, have just gone back to check and it's definitely 6.5 times. It's interesting to have the intermediary calculator though.

I'm not keen on HSBC, so it's interesting to know that they often revise down their lending figures.

Five times would be perfect, and when I say affordable I mean based on the fact that I can currently overpay my mortgage by £1200 a month, I'm confident I can afford a little more.

Kingstreet, would be great to know which lenders will lend up to 5 times, thanks.

amateur_house

The HSBC calculator said I could borrow 5 times salary, which was higher than some of the others. Nationwide would only lend me 2 times salary, which wasn't enough so I went with HSBC. I am actually borrowing 2.75 times salary, but was told in my affordability meeting that II could have borrowed up to 5 times. I thought this was far too much as I am on quite a low salary and will be paying the mortgage over 13 years.

MARTYM8`

I tried the HSBC calculator for the fun of it.

It said I could borrow £360k with a £90k deposit with no dependents.

But if I had 3 kids I could still borrow £358k.

How much do they think it costs to support 3 kids - next to nothing?