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30 year mortgage possible?
buel10
Posts: 470 Forumite
Hi all.
My wife is 28 and earns over £30k, I am 40 and earn £21k. We are looking to apply for a mortgage within the next 6 months.
My wife has been playing around with various mortgage calculators and asked me if, because of my age, I would be able to be part of a 30 year mortgage. I didn't know so can anyone help, please?
My wife is 28 and earns over £30k, I am 40 and earn £21k. We are looking to apply for a mortgage within the next 6 months.
My wife has been playing around with various mortgage calculators and asked me if, because of my age, I would be able to be part of a 30 year mortgage. I didn't know so can anyone help, please?
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Comments
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Maybe a 29 year term with some lenders would be the maximum..
Although it will depend on when you plan to retire. If you plan on retiring before 70, then you may need to reduce the term.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 -
Thank you.
Please can I ask what is the average multiple on combined income?0 -
4.5x.
It can go as high as 5x in some circumstances with some lenders. Although if you have kids and debts/commitments, it could be less.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 -
4.5x.
It can go as high as 5x in some circumstances with some lenders. Although if you have kids and debts/commitments, it could be less.
Thank you.
Regarding debts, I was under the impression that any debts (loans or Credit cards) would preclude, or seriously affect, any applications?0 -
It depends.
I recall a case in December where I had a client who was paying £300 a month on credit cards. If they reduced the balances down so the repayments were £250, they could lend exactly the same as if they were paying £0 on them. Sometimes the maximum loans are limited by an income multiple rather than their commitments.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 -
This is one of the reasons you should trial different circumstances on different lenders' online affordability calculators.
An LTI cap may mean you can input (eg) £500 a month in credit commitments and still borrow the same mortgage amount.
If you try to use income multiples you will never be aware of this, as that's a maximum and from it the costs of credit, dependents, ground rent & service charges, maintenance, childcare/school fees etc are deduced.
When I was a lad, we had 3 x 1 + 1 x 2 or 2.5 x joint but before multiplying, we deducted from income the annualised cost of such items.
Online calculators make life much, much easier.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 -
Ah, I see that lenders' websites want more information than the generic mortgage comparison sites.
Thank you.0 -
I can't see why 29-30 won't be possible, some even go up to 35 years now?0
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Going over 70 gets more complex.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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