Could I be lent a lot more than 4.5x my earnings.

surfer9

Hi,

I have done these online mortgage calculators that tell you what you could borrow, but how accurate are they compared to what a mortgage broker may lend you when you speak with them and show them the insides out of your finances and financial history?

I was wondering if all or some of the following things could get me a significant extra boost in what a mortgage broker would lend me, other than the typical 4x or 4.5x earnings....

1. No debt.

2. I have the highest credit score possible. Experian score 999.

3. No dependants.

4. Huge deposit. For the property I am interested in I have approx a 60% deposit.

5. Potential for my working hours to increase from a 30 hour week to a 35 hour week sometime in the next year.

6. Property is near to my work (2miles away) so travel costs will be relatively low.

7. Other then essentials like food, electricity/gas/water, council tax... I won't have any big expenses ie. Phone bills, Gym memberships, etc.

I am just hoping that because my finances are pretty much as clean as a lender could wish for, that maybe I am a rare case and will potentially get a significantly bigger boost in mortgage size than the average person. I have found a property, but based on the typical lending of ~4.5x your earnings, I cannot afford it.

I know........... I should just go ahead and speak with some banks/mortgage brokers, but I'm just after some thoughts before I go ahead with that.

hazyjo

With YBS, their calculators have always been spot on with me.

Tbh I think you'd be mad to want to borrow more, and they'd be mad to let you. Really can't see it happening.

Bossypants

4.5x isn't typical, it's the absolute max. You only get that with those points in your favour (i.e. low outgoings and high deposit). Without them, you would be offered less than 4.5x. Sorry to be the bearer of bad news.

Owain_Moneysaver

No. 4 is the only one that is really going to help you, in that you will have a good loan-to-value ratio.

Bear in mind that an affordable monthly repayment now might not be if interest rates go up. Which, over the next 25 years, they probably will. On the other side, we have seen a period of stagnant wages against inflation (or decreasing wages in real terms).

DCFC79

You score albeit 999 is no use for mortgages, only you can see it, lenders see your history.

Vestra

You can get 5 or 5.5 possibly depending on you career. Go and see a broker.

staffie1

What will you do when interest rates increase and you’re up to your neck in debt?

Thrugelmir

surfer9 wrote: »

5. Potential for my working hours to increase from a 30 hour week to a 35 hour week sometime in the next year.

Lenders work on hard facts not potential ones.

epinjy

https://www.which.co.uk/news/2019/05/new-mortgage-lends-homebuyers-5-5-times-their-salary/
Probably not relevant though!

For what its worth, I got 4.75x no problem on a £27.5k single salary with First Direct in a somewhat similar position? Single income, good credit, low expenses, large(ish, 20%) deposit, no dependants.

(FYI, a mortgage broker probably wont lend you anything )

Yalpsmol

Where do you live that 4.5x your income PLUS 60% deposit doesnt cover it? London? If not there must be plenty of room to find something a bit cheaper you can afford. Or if you have saved 60% I assume you're a good saver so just save more and revisit in 6 months (granted you'll need to find a new house).

lookstraightahead

See someone independent. You need flexibility not silly little tick boxes I understand where you are coming from.