4.5x income + 90% LTV - pipe dream?

mattdrummer

Hello! 

I'm new to all this - a first-time buyer - and have been looking at a few properties of interest. 

I've been told 85% LTV is likely the best I can do at the moment, but having seen a small number of 90%s out in the wild from an online search am wondering if 90% might be possible at that level of income multiple (it doesn't specify on the searches I've seen). Is that a realistic thing to look for in this climate? Would be looking to borrow £450-500K.

Any advice greatly appreciated! 
Thanks, 
Matt

Blackbeard_of_Perranporth

LTV rates are very volatile at the moment, but use a broker and shop around. Others will be on here soon.

dimbo61

Well I read in the paper today that there is only one 95% LTV mortgage now on the market.
Very few 90%LTV deals as well.
However if your looking at £450/500K property's your not on minimum wage are you ?
It's one thing to say 4.5X say £20,000 a year is tight but if your earning £80,000 a year you have a better chance.
Spend some money with a good mortgage broker.

sharpe106

With a good broker you can probably do it.

jamielutz1987

@mattdrummer
Yes there are 90% deals on the market from lenders that may lend 4.5x plus.

Accord for instance may lend up to 500k for someone earning 100k. 

However, based on the limited information in your post, it's impossible to say whether you meet criteria and affordability for that amount.

For instance, on one hand you could  have a PAYE basic income of 100k, no dependents, no debt and a clean credit history. This would stand you in good stead to maximise your borrowing in terms of loan to income.

On the other hand, the more you deviate from the ideal described above, the more downward pressure there is on how much you may be able to borrow.

Mind you there are only a few out there and the rates are pretty high. For instance, to borrow at 90% LTV from Accord you have to sign up to a 3% rate for a 5 year fix.

Unless you are in a hurry, in your place I would consider waiting till products return to the market.

khanji17

Any idea how long before better deals return to the market?

jamielutz1987 said:

@mattdrummer
Yes there are 90% deals on the market from lenders that may lend 4.5x plus.

Accord for instance may lend up to 500k for someone earning 100k. 

However, based on the limited information in your post, it's impossible to say whether you meet criteria and affordability for that amount.

For instance, on one hand you could  have a PAYE basic income of 100k, no dependents, no debt and a clean credit history. This would stand you in good stead to maximise your borrowing in terms of loan to income.

On the other hand, the more you deviate from the ideal described above, the more downward pressure there is on how much you may be able to borrow.

Mind you there are only a few out there and the rates are pretty high. For instance, to borrow at 90% LTV from Accord you have to sign up to a 3% rate for a 5 year fix.

Unless you are in a hurry, in your place I would consider waiting till products return to the market.

jamielutz1987

@khanji17 It's hard to say, your guess is as good as mine!

[Deleted User]

At the moment, probably not, in a few more months, probably yes. Wait a few more months, put more away for a deposit, let things settle, the make a decision once things have stabilised. 

mattdrummer

Thanks all, appreciate the thoughts. Think I will hold out for a bit, it's just tempting as there's a property I've seen that I quite like, but can't justify the 15% deposit, would leave me very little left. Also - not to derail the conversation (famous last words...) - can't help but think prices are more likely to go down than up in the next 6 months. But then in that scenario I guess 90%LTVs would be slow to come back too? 

mattdrummer

jamielutz1987 said:

@mattdrummer
Yes there are 90% deals on the market from lenders that may lend 4.5x plus.

Accord for instance may lend up to 500k for someone earning 100k. 

However, based on the limited information in your post, it's impossible to say whether you meet criteria and affordability for that amount.

For instance, on one hand you could  have a PAYE basic income of 100k, no dependents, no debt and a clean credit history. This would stand you in good stead to maximise your borrowing in terms of loan to income.

On the other hand, the more you deviate from the ideal described above, the more downward pressure there is on how much you may be able to borrow.

Mind you there are only a few out there and the rates are pretty high. For instance, to borrow at 90% LTV from Accord you have to sign up to a 3% rate for a 5 year fix.

Unless you are in a hurry, in your place I would consider waiting till products return to the market.

Am not a million miles from this profile but my credit history (at least as far as I can tell from the services that estimate a score) is not great, partly due to having lived overseas for a while and partly just due to not paying attention in my 20s/early 30s. So may not be in the running for primo deals. 

jamielutz1987

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