Earnings multiplier for mortgage

Aqua1985

Which high st lender is the most generous with earnings multiplier for mortgage? Combined earnings around £80k with 80k deposit. HSBC seems slightly better than NatWest but any suggestions? Both jobs salaried and in role over a year no adverse credit etc 

amnblog

It is not a simple as that. There are many factors that feed in to affordability calculations.

If you are struggling to achieve the figure you want, consult a mortgage broker.

ACG

The income multiples is a maximum, not a guarantee. 
As amn says, other things play a part - children, commitments (childcare, maintenance, service charges), debts (loans, credit cards, student loans) etc. 

Its a case of having a play around with the affordability calculators or speaking to a broker. 

Some lenders May say they lend more, but as soon as you put down a £100 credit card they reduce how much they can offer. Other lenders may not reduce they amount until you hit a certain figure, I seem to recall a case with natwest a while back where they would lend the same amount to a couple whether they had a £2k credit card balance or zero... just as an example. 

kingstreet

NatWest email today;-

"We’ve implemented improvements to our affordability calculations. This includes a reduction in our residential 5 year stress rate, as well a reduction in National Insurance rates.

These improvements could increase the amount we’re able to lend to your mortgage customers. For an indication on how much we could lend, please visit our updated residential affordability calculator, or log in to do a Decision in Principle (DIP) or place business.

Transitional Arrangements

Any (DIP) or Full Mortgage Application submitted before 18th April will have the previous values applied, as they were at the original submission. The new values will be applied on DIPs and Full Mortgage Applications from 18th April."

Zoe02

Maybe a broker can help but thought Natwest had schemes like helping hand which go to x5 income.

ACG

Zoe02 said:

Maybe a broker can help but thought Natwest had schemes like helping hand which go to x5 income.

Thats nationwide, but the key part is "go to", not everyone will get 5x income. 

kingstreet

Income multiples are outdated and irrelevant. Use the lender's online affordability calculator with the correct info in the right boxes.

pjs493

I’ve had a number of decisions in principle from two high street banks and a mortgage broker. I used the same information on each application. The amount they were willing to lend (or the amount of the best deal via the broker) differed by about £70k depending on which DIP/AIP I look at. The moral of the story is that each lender looks at different criteria and makes decisions based on that. A lot of it will be down to individual circumstances, so just because bank A was willing to offer me more than bank B doesn’t mean it will be the same for the next person.