Income multiples

gemima

Hello,

Can anyone tell me what the average icome multiple building societies will lend on now please?

This is regarding purchasing a new house with 30% deposit.

Do they do it on both incomes and how does this work?

Thanks in advance

Reds-on-Sea

if you have worked out you have a 30% deposit, you must already have a figure in mind how much you are spending?

Me & bf have just got just over 3.5x joint incomes on a 90% mortgage.

Everyone's a bit different, some do it on multiples, some on affordability, it also takes into account credit history (bad credit = lower multiples) you just need to throw a figure at them & see how much they'll give you. There are lots of mortgage calculators online that will give you a rough figure. I' msure with a 30% deposit, you'll be okay

Dan_Collins_2

They range from 2.5x joint to 4-5X joint so it depends on your situation and your affordability.

Conrad

No way to tell, I get asked every day and always answer that it depends on your overall credit rating, other debts, how long in jobs etc etc etc

You have to apply to be sure, tis the only way

LillyJ

We borrowed 2x joint from Halifax, with 10% deposit, but they wanted to lend us 4.5x joint, which was a bit scary! They said that was what was affordable for us, but I wouldn't want to push it that much.

gemima

OK thanks for the replies. Our credit rating is fine, we currently have a mortgage but are looking to move up but only slightly.

I wasn't sure with the recent issues if income multiples were something they had tightened up on - I guess they have.

sarkin

I believe some people have self certed thier income to negotiate the problem of lack of income, however I can not confirm this.

LillyJ

What does self cert actually mean? Is it for self employed people only? If not then what is the point apart from to lie??

sarkin

Ah well you see people want to buy the house of thier dreams, you know 3 bed semi with off road parking. Any way done here in the South because we are also rich they start at 250,000 which is 4 times your income plus 50K deposit. Problem is not every one earns 50K so they find a broker who will massage the figures and hey presto prices are going up because there is a shortage of property. IYSWIM anyway hope this helps

LillyJ

Surely that is illegal!? Seems stupid to me as they wouldn't afford the repayments?
They should move up here, 3 bed semis with off road parking for 135k!

UK007BullDog

That is why you will see a higher number of repossessions because they can no longer afford it but it was the bad broker and the bad bank who made it all happen for them when the rates were low.

But thankfully a lot of the self certs have disappeared.