5 times salary mortgage anywhere?

thegoon

HI

im looking for a mortgage, its going to be a single mortgage but i would like it to be for 5 times my salary, which is £21500. I have had one in principal decision from Birmingham midshires who offered 3.5 times my salary. the payments wouldnt be a problem as my partner and i share the rent, but for personal reasons i would like the mortgage to be in my name only. Anyone have any ideas where i can get a 5 times mortgage?

Thanks
goon

Ian_W

goon,
No expert, but Northern Rock feature on these threads quite a lot as a lender with high income multiples - but be prepared to pay. A lot of their schemes start very low but then tie you in to uncompetive rates for a few years after that.
Also try running your figures thro' moneynet, moneysupermarket calcs linked to the mortgage section of MSE site and/or calling one of the brokers listed on there.
If you could overcome your "personal reasons" you'd probably find better deals available with two salaries, IMO.

asandwhen

The abbey are very good too - think they will lend 4.5.

mbamick

A 5-times mortgage? Rather you than me Goon!
I took a 3-times mortgage out, in the early '90s, and was petrified of interest rates going above 8%. Fortunately, they never did - so it gave me the opportunity to pay the mortgage off in 10 years. But all I'm suggesting is that you need to think very carefully about the potential for changed circumstances over the next 25 years. Yes, your income should increase; but you need to consider the risk of a breakdown in your existing relationship [you won't have the rent coming in, to offset the mortgage costs] or an increase in interest rates.

I did the same as you too, and got the mortgage in my name - simply because I wasn't sure how my relationship would pan out; and I didn't want to worry about any messy settlements over the house. As it is, we are still together after 13 years, and are considering buying a place together. Again, though, a small word of warning if your "personal reasons" are based along similar lines. I remember reading that, if your partner can prove that her payments were contributions towards the mortgage [rather than an officially / formally agreed rental income] she may be in a position to argue that she owns a stake in the property. I remember that the building society made my partner sign a certificate stating that she had no entitlement to the BS stake in the property; but she could have had a stake in any equity in the house if I had asked her for rent / mortgage payments.

thegoon

i have no problems in her owning half the house at all, we are getting married in august next year! Just would be easier if it was just me. Thanks for all your help.

meanmachine_2

A lot of FTBers are going with Northern Rock as they have very slack lending criteria.

Bad idea. Their SVR and other rates will be higher than other lenders.

Try entering your details into the Alliance and Leicester website as they now work out their lending based on "affordability". If you have no debts or other loans you will get more out of them.

But for heaven's sake, if you're borrowing so much, try to fix your rate.

Personally i would want to fix for at least five years. If rates go up, you're protected. However you don't benefit should int rates fall.

will-in-estoril

thegoon wrote:

HI

im looking for a mortgage, its going to be a single mortgage but i would like it to be for 5 times my salary, which is £21500. I have had one in principal decision from Birmingham midshires who offered 3.5 times my salary. the payments wouldnt be a problem as my partner and i share the rent, but for personal reasons i would like the mortgage to be in my name only. Anyone have any ideas where i can get a 5 times mortgage?

Thanks
goon

Have you tried Portman Building Society?

mingymoo

thegoon wrote:

HI

im looking for a mortgage, its going to be a single mortgage but i would like it to be for 5 times my salary, which is £21500. I have had one in principal decision from Birmingham midshires who offered 3.5 times my salary. the payments wouldnt be a problem as my partner and i share the rent, but for personal reasons i would like the mortgage to be in my name only. Anyone have any ideas where i can get a 5 times mortgage?

Thanks
goon

There was an article in last week's Observer.
http://observer.guardian.co.uk/cash/story/0,6903,1572356,00.html

LouLouHelen

I think some of the lenders work out borroing on affordability - these tend to offer more than the ones that simply offer a mutliplication of income.

A&L and Standard Life Bank also have websites where you can plug your figures into and get a idea of whether they will lend enough. Standard Life Bank will increase the amount you can borrow if you increase the term (not necessarily a good idea but it does make a difference).