Best fixed rate mortgage that based on affordability

river_kwai

Hi, I am looking for the best fixed rate mortgage (2 year fixed) that are based on affordability (NOT income multiples).

Can anyone point me to the best deal? I know West Brom is doing a 4.15% rate fixed for 2 years but is it based on affordability???

meanmachine_2

Aliiance and Leicester use affordability, afaik Their fixed is around 4.24, unless it's gone up recently. But you're best off seeing a broker in this instance.

river_kwai

Meanmachine, u r wrong. I am definite that A&L's lending criteria is based on income multiples. I have seen their mortgage advisor.

meanmachine_2

Well what is your income and what is the house price? I'm guessing the vendor accepted your 175K offer?

river_kwai

Unfortunately they haven't. I think the house is not worth any more than that. I am therefore considering other alternatives now. I have seen better houses but they are more expensive. I am therefore looking at alternative mortgages that could possibly lend me more. I am a saver with no debt and spare disposable income that I could use for higher monthly repayments.

I am looking for mortgages for £171k (90% of £190k). A&L say they won't stretch it that far for me. They can only guarantee £156k and at most £162k.

meanmachine_2

Well I know Abbey offer 4.2 x salary. Or you could try Northern Rock or IF - they both have lax lending multiples.

But according to the Mail on Sunday, A&L, Direct Line, HSBC, Halifax Nationwide and Standard Life all use affordability, rather than standard income multiples.

So they must be wrong. Wouldn't be the first time...

By the way I think the west Brom do a cheap self cert, so you could try them.

crazyhazy

direct line bases there mortgages on affordability.

crazyhazy

direct line bases their mortgages on affordability.

dwsjarcmcd

If I was you I would trawl lenders websites and use their 'how much can I borrow 'section. Some (Halifax, YBS, B & give you a range from £x to £y, and this will be based on a credit score that they will calculate IF you apply, obviously the better the score the more you will lend. This research will take you 5 to 10 minutes to do, also I wouldn't get too hung up on the afforability issue, it depends on the lender's view of several things i.e. debt, and whether they deduct it from income. My experience is that there are plently who will lend more than A & L, and given that you were fairly close with them, I don't think you should have too much of a problem.

Dutchgirl_2

I just got an A&L mortgage offer based on a 3.1 income multiple (joint) on a below average credit score (I have only lived in the UK for 2 years). Through the broker, A&L agreed to take into account my substantial and guaranteed income increase in September, rather than my current income. They also took into account my rent payments, which are higher than the mortgage repayments. All this meant that I could get a mortgage for a higher amount. It involved quite a bit of negotiating, but it was worth it.