Lender or broker that can sort 6 x income?

Manchestermrs

Hi,

My husband and I are both civil servants and have a 50% deposit on a house. However, to get our absolute dream next home, we’d need to borrow 6 x our income (and wouldn’t need to move for the next 20 years). Does anyone know of any lenders that do this and don’t charge astronomical interest for the privilege? 4.5 ish seems the norm these days. 

Also - we would likely fix for just two years hoping rates will come down. Is this a good plan? 

Thanks,

Kirsty  

housebuyer143

I don't think anyone does 6xs your income tbh. Nationwide helping hands used to do close but you need to be a FTB with an income over a certain amount.. Not sure they even offer this anymore.

ACG

There are lenders who do manual affordability checks, but I dont think in the current climate you will get 6x income. I did something like 6.1x income about 3 years ago when rates were low, but the couple were vegetarians, bought most of their food in bulk from the cash and carry and lived very frugally. We also did a 5 year fixed rate as the stress testing was lower. 

Since then rates have gone up, the cost of living has kicked in (higher utilities, food... everything!). 

I dont think you will get 6x income now. I could be wrong though. 

silvercar

Any chance you have a high earning relative who would go on the mortgage but not the deeds? If so, Barclays family mortgage may suit.

Sncjw

Wow you have 50 percent deposit and needs a 6x income mortgage. How much is the house?

mi-key

Mortgage lenders who offer those sort of multiples generally only offer them to the sort of people who are rich enough to have never needed a mortgage !

Nailer99

Prices are predicted to fall 10% this year. Hang on a little and you’ll only need a 4-time mortgage which should be easy to secure. 

Nailer99

Also, I think the million-pound house end of the property market is more volatile than lower down so the drop could be higher. Work out what you can realistically borrow and then make the seller an offer. 

ACG

Nailer99 said:

Prices are predicted to fall 10% this year. Hang on a little and you’ll only need a 4-time mortgage which should be easy to secure. 

Am I doing this wrong? Im no Rachel Riley so I could be wrong but...

£25k income x 6 = £150,000. 
£150,000 x 90% = £135,000. 
£135,000 / 4 = £33,750 - which is a little more than £25k. 

Nailer99

ACG said:

Nailer99 said:

Prices are predicted to fall 10% this year. Hang on a little and you’ll only need a 4-time mortgage which should be easy to secure. 

Am I doing this wrong? Im no Rachel Riley so I could be wrong but...

£25k income x 6 = £150,000. 
£150,000 x 90% = £135,000. 
£135,000 / 4 = £33,750 - which is a little more than £25k. 

You are omitting the deposit. 

Total house price now would be 300k. If the house price drops by 10% they’d only need to borrow 120k, which is 4.8 times their income, within the range of some lenders. 

Koalabear2022

ACG said:

Nailer99 said:

Prices are predicted to fall 10% this year. Hang on a little and you’ll only need a 4-time mortgage which should be easy to secure. 

Am I doing this wrong? Im no Rachel Riley so I could be wrong but...

£25k income x 6 = £150,000. 
£150,000 x 90% = £135,000. 
£135,000 / 4 = £33,750 - which is a little more than £25k. 

Assuming the deposit amount stays the same, 10% fall in purchase price means 20% reduction in mortgage required. 
£25k income x 6 = £150,000 - mortgage required
£150,000 / 50% = £300,000 - listing price
£300,000 x 90% = £270,000 - purchase price
£270,000 - £150,000 = £120,000 - new mortgage required
£120,000 / 4 = £30,000 - still more than £25k
£120,000 / £25,000 = 4.8 - I guess at least the multiple starts with a 4?