Minimum Increased Disposable Income - 5 times salary multiples

nakiwala123

I ws looking at the Coop mortgage lending criteria, and this point about "minimum increased disposable income" seemed to be very particular that I thought I would check to see what that means. We currently hold our mortgage with Coop and are looking to borrow further for an extension, so I thought I would check first to see if there is enough within the salary multiple limit for us to borrow more. Borrowing would still be below the 60% LTV when all combined. 

I understand that they look at affordability with regards to normal spending, other debts, etc, but what does "minimum increased disposable income limit" mean? 

housebuyer143

To get the 5x borrowing you likely need to meet their set criteria for how much disposable income you have after spending. If you don't meet this then you can only borrow 4.49x your income. 

nakiwala123

housebuyer143 said:

To get the 5x borrowing you likely need to meet their set criteria for how much disposable income you have after spending. If you don't meet this then you can only borrow 4.49x your income. 

Yes, I was wondering what that figure might be.  We do have disposable income which we put into savings but I don't know whether that would meet the bank's limit or if it is below that. 

grumpy_codger

I think Coop 'writers' are the only people who know what this actually means. Their website is the only place in the internet where this mysterious combination of words can be found:
https://www.google.com/search?q="Minimum+Increased+Disposable+Income"

nakiwala123

grumpy_codger said:

I think Coop 'writers' are the only people who know what this actually means. Their website is the only place in the internet where this mysterious combination of words can be found:
https://www.google.com/search?q="Minimum+Increased+Disposable+Income"

Yes, exactly that. It seems to be a phrase that is unique to them. I had never come across it before which is why I thought I would check to see if others knew something I didn't. 

Hoenir

Might well be that you need a (joint) monthly net income of £5k to qualify, for example . The product isn't open to all. Above a certain level a household income can easily cover the normal day to day bills and has excess disposable income that can be spent as people wish. The "figure" will be determined by the risk management team and adjusted as the lender decides to allocate more or less money to the product. 

nakiwala123

Hoenir said:

Might well be that you need a (joint) monthly net income of £5k to qualify, for example . The product isn't open to all. Above a certain level a household income can easily cover the normal day to day bills and has excess disposable income that can be spent as people wish. The "figure" will be determined by the risk management team and adjusted as the lender decides to allocate more or less money to the product. 

Ah ok that makes sense. I will probably have to actually speak to Coop about this.