4.75x mortgage?

ccbrowning

Hello

Is it feasible in my case? Looking at what will be 4.71-4.75x my PAYE salary and LTV would be 75%. Sadly wont be able to get it down to 70. I’m a reasonably high earner, over 100k. Credit cards are only ever used for spending, no debt, kids, etc. 

MaryNB

I got 4.75x with Halifax on a much lower salary.
At over £100k and LTV of 75% they could go up to 5.5x.


I'm sure there are other lenders who may go up to 4.75, I'm just more familiar with Halifax's policy.

ccbrowning

Thanks, Mary! I did look around it it seems like a few places are doing it. Did you use a broker? Looking for a new one as the last kept trying to upsell me on other insurance, etc.

MaryNB

No I went direct. I had a pretty straightforward case. Permanent salaried job, no dependents, no issues on my credit report. 

My friend got 5x with virgin money with a much lower salary that you. She went via a broker that did great work for her. I got a DIP with NatWest for 5x but there was some glitch and it was revised down to 4.5x (they tried to help me get back to 5x but they couldn't figure out why it was revised down) but you may have better luck. 

I went with Halifax because they would give me 4.75 and the rates were the best for me at the time. It was a very straightforward process. 

ccbrowning

Understood! Now I just need to decide if I really want such a large mortgage…

ccbrowning

Went through a broker for a DIP and it came back with the 5.5x salary amount via Halifax.

getmore4less

75% seems to be the sweet spot with a lot of lenders
The rate drops after that get smaller some just have 60%
The difference between 2y and 5y rates is narrower making the 5y more attractive.

Halifax  seem to have some decent rate for new business but  before they hid the retention deals they were not as good especially for smaller borrowings
Brokers that deals with them may know where they are now on those product switch options

ccbrowning

Good to know! I’ll work to pay it down so I am at a 4x multiplier when the term is up. By then I’ll also have proof of 3 years of bonus payments from my new job, too, which will help I hope. 

[Deleted User]

getmore4less said:

75% seems to be the sweet spot with a lot of lenders
The rate drops after that get smaller some just have 60%
The difference between 2y and 5y rates is narrower making the 5y more attractive.

Halifax  seem to have some decent rate for new business but  before they hid the retention deals they were not as good especially for smaller borrowings
Brokers that deals with them may know where they are now on those product switch options

@getmore4less

Unfortunately in the same boat where we only get the rates they qualify for so its not something I have a massive perception of across all ltv bands and loan amounts. 

I've looked at the last PT i submitted last month as reference though.   That was a £240k mortgage over 21 years.   Halifax deal was fee free at 1.61%, cheapest fee free was Nationwide at 1.14%.  Unfortunately remo wasnt an option so had to do pt.  

They are definitely still really bad for dual pricing.  Probably more so than Natwest at the moment who seem to be a lot more competitive on their existing customer rates (well, their fee based rates.  The fee free ones still seem to be very poor). 

getmore4less

Deleted_User said:

getmore4less said:

75% seems to be the sweet spot with a lot of lenders
The rate drops after that get smaller some just have 60%
The difference between 2y and 5y rates is narrower making the 5y more attractive.

Halifax  seem to have some decent rate for new business but  before they hid the retention deals they were not as good especially for smaller borrowings
Brokers that deals with them may know where they are now on those product switch options

@getmore4less

Unfortunately in the same boat where we only get the rates they qualify for so its not something I have a massive perception of across all ltv bands and loan amounts. 

I've looked at the last PT i submitted last month as reference though.   That was a £240k mortgage over 21 years.   Halifax deal was fee free at 1.61%, cheapest fee free was Nationwide at 1.14%.  Unfortunately remo wasnt an option so had to do pt.  

They are definitely still really bad for dual pricing.  Probably more so than Natwest at the moment who seem to be a lot more competitive on their existing customer rates (well, their fee based rates.  The fee free ones still seem to be very poor). 

Thanks, Is there anything to stop brokers collating the information, presumably some of the bigger broker houses will have a much better data set to work from than a smaller group or independent that will not be dealing with small numbers from one lender.

Seems to me that some lenders target new business but hide their less attractive PT rates you will be offered next.

OK they can be tweaked on a per customer basis but Halifax with their history of not so good especially as they teared rates higher for smaller debt.

I have read that Santander(who also hide their PT rates) can be very competitive.   

Given that PT rates are quite important part of the risk assessment must be quite difficult to asses those lenders that hide them.

[Deleted User]

getmore4less said:

Deleted_User said:

getmore4less said:

75% seems to be the sweet spot with a lot of lenders
The rate drops after that get smaller some just have 60%
The difference between 2y and 5y rates is narrower making the 5y more attractive.

Halifax  seem to have some decent rate for new business but  before they hid the retention deals they were not as good especially for smaller borrowings
Brokers that deals with them may know where they are now on those product switch options

@getmore4less

Unfortunately in the same boat where we only get the rates they qualify for so its not something I have a massive perception of across all ltv bands and loan amounts. 

I've looked at the last PT i submitted last month as reference though.   That was a £240k mortgage over 21 years.   Halifax deal was fee free at 1.61%, cheapest fee free was Nationwide at 1.14%.  Unfortunately remo wasnt an option so had to do pt.  

They are definitely still really bad for dual pricing.  Probably more so than Natwest at the moment who seem to be a lot more competitive on their existing customer rates (well, their fee based rates.  The fee free ones still seem to be very poor). 

Thanks, Is there anything to stop brokers collating the information, presumably some of the bigger broker houses will have a much better data set to work from than a smaller group or independent that will not be dealing with small numbers from one lender.

Seems to me that some lenders target new business but hide their less attractive PT rates you will be offered next.

OK they can be tweaked on a per customer basis but Halifax with their history of not so good especially as they teared rates higher for smaller debt.

I have read that Santander(who also hide their PT rates) can be very competitive.   

Given that PT rates are quite important part of the risk assessment must be quite difficult to asses those lenders that hide them.

I guess there is a way but also they dont notify us of rate changes ahead of time so it would only be valid on the day it was gathered.   And given they claim its a bespoke rate for the client there isnt (as far as I know) a published list of where the rate change points are. Is used to be sub £100k but its not published so could be anything now.   Page 14 of https://www.halifax-intermediaries.co.uk/pdf/mortgage_guide.pdf is literally all they say on the matter.  

A few lenders are now trying to do this 'bespoke pt' nonsense. Just makes it a nuisance when trying to search on sourcing.  

Santander are terrible for brokers at the moment as they hide the PT rates but also undercut broker rates on pt business if they go direct. They essentially happy for us to do all the work for them upfront and cut us out once they have the client on the books. 

As much as I hate them, Barclays are probably the one that comes out well in the pt debate as they do the EMC discount rates for existing clients.   Also their index valuations are wildly high at the moment for some reason. 

I have always said that if I have (for example) Nationwide and Natwest on the same deal then I'm going Nationwide as they have a history of offering better existing customer rates.  They can obviously change policy anytime they want but I would like to reward lenders for that kind of behaviour and hope that more will follow.