How much all banks lend those days?

The-Joker

Is it around 3.5x joint income these days?

Are there mortgage options available for first time buyers for 4x income?

paddyandstumpy

We got 4.75x combined income with Nationwide, we were FTB looking for 90% LTV

The-Joker

paddyandstumpy wrote: »

We got 4.75x combined income with Nationwide, we were FTB looking for 90% LTV

Thanks is that hard to get?

The-Joker

Say for example someone was looking at a £300k property and had £30k deposit and wanted to buy a house in London with help to buy so got 40% HTB loan interest free for five years. So they would only need 50% loan to value mortgage.

If their combined earnings £35k would they get a low interest mortgage accepted?

[Deleted User]

you will get loads of different responses to this question as no 2 people have the same finances.

As a general rule you acn expect anywhere from 4.49 to 5 times your income. But then they will also look at overall affordability so if you have loans/childcare/car finance etc then expect this to be reduced.

Depending on occupation there are some lenders doing 5.5x income.

4.5 or 4.75x joint income with no debts is quite common

[Deleted User]

The-Joker wrote: »

Say for example someone was looking at a £300k property and had £30k deposit and wanted to buy a house in London with help to buy so got 40% HTB loan interest free for five years. So they would only need 50% loan to value mortgage.

If their combined earnings £35k would they get a low interest mortgage accepted?

Help to Buy caps income multiples at 4.5x income. Lenders also factor in that H2B loan in as a commitment usually around 3% of the balance.

So depending on other outgoings you would be looking at a max of £157,500 borrowing if using h2b. With the h2b equity loan included then it would be tight. If any other lending in the background then its unlikley

Get a broker to do some numbers for you though

The-Joker

Deleted_User wrote: »

Help to Buy caps income multiples at 4.5x income. Lenders also factor in that H2B loan in as a commitment usually around 3% of the balance.

So depending on other outgoings you would be looking at a max of £157,500 borrowing if using h2b. With the h2b equity loan included then it would be tight. If any other lending in the background then its unlikley

Get a broker to do some numbers for you though

£157K would be ample as there is no other borrowing

I wonder what kind of interest rate could be got at the moment?

Would it be possible to get interest only repayment?

ACG

General rule of thumb, assuming a 25 year term (or longer), an income of circa £20k plus and not too much debt then 4.5x income should be achievable.

There is the potential to go beyond that, but the HTB loan will mean there is a cap.

RealElement47

ACG wrote: »

General rule of thumb, assuming a 25 year term (or longer), an income of circa £20k plus and not too much debt then 4.5x income should be achievable.

There is the potential to go beyond that, but the HTB loan will mean there is a cap.

What is the cap?

ACG

JMA mentioned it in his post above mine, 4.5x.