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Mortgages question
Former Member
Posts: 1,876,323 The Mix Honorary Guru
Hiya guys, now i already have a mortgage with my ex partner but i am maybe going to be looking into selling our house next year and buying somewhere on my own. My question is really about what multiples lenders give these days? When we got ours i think it was 3.7x joint income was the maximum. That was over 2 years ago now and i'm not sure if it's different for a single applicant.
I've done an internet search but mostly its just a rough guide of 3.5x, i've heard of my friends getting 4 and a bit times their salary though. I will have a deposit which we didn't when i bought with my ex so i think that makes a difference too.
Any help would be great thanks!
I've done an internet search but mostly its just a rough guide of 3.5x, i've heard of my friends getting 4 and a bit times their salary though. I will have a deposit which we didn't when i bought with my ex so i think that makes a difference too.
Any help would be great thanks!
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Comments
best to check around i would think.
theres a lot of good mortgage advice over at moneysavingexpert altho im sure you'll find some on here as well!
It depends so much these days, but generally you will be allowed to borrow more in relation to how much x your salary if you go for a mortgage on your own, than if you are getting a joint mortgage. This news article has some interesting info you may want to read.
You can also try this website to see what lender's would possibly lend you on your current salary.
4x may be an option, especially as you have a deposit..
I would be very worried if you took out a mortgage that was more than two-thirds of your salary each month. You would be setting yourself up for financial ruin.
The banks won't tell you what you can afford, and just because a bank will give you the money doesn't mean you should take it.
For info though, Halifax, Nationwide and Abbey are amongst ones that will lend on a 5* multiple.
:yes:
Especially important if you're buying alone, as it's more expensive to live by yourself.
My bank would have lent me 5x my salary, but realistically, living alone I would only have been able to afford 2.5x max.
I'd love to know how you and others making these type of comments would know?
With no idea of the wage, the persons debts etc?
My advice would be to see an independent mortgage adviser. We had a mortgage offer from Northern Rock and were willing to go with them. The estate agency we bought from asked us to see someone they recommended and it was free. He was really nice and we got a much better fixed interest rate deal and the 'real' cost over the fixed period was lower than with Northern Rock. We're with Bristol & West. It is worth speaking to someone (a lot are free, ours was) because they have more 'tools' to investigate more lenders than you can possibly can on your own. Good luck. :thumb:
I already know how much i can afford and as it's a bit more than 3.5x my income i just wondered really if lenders would lend more.
I have no other outstanding finance or debt so i know that i can afford a bit more than the 3.5x norm. I know alot of people who have a mortgage higher than that and manage fine.
(Before people start arguing about unexpected costs etc i have had a mortgage before, and still do, so i know to think of these things )
Thanks again.
Earning £20k = £1.3k/mth after tax, a 5x multiple = just £450/mth interest repayments, £850 left
Earning £40k = £2.3k/mth after tax, a 5x multiple = £900/mth interest repayments, £1,400 left
So even with a monthly mortgage repayment on top of the interest repayment, should be affordable even with a 5x multiple.
Most buyers on a moderate income at the moment need to be taking out fixed rate mortgages, not tracker mortgages, just in case anything happens. A lot of people also feel more secure knowing exactly how much they'll be paying month to month...fixed rate mortgages are well over the 6% mark these days.
I also wouldn't advise anyone to just pay the interest payments on a mortgage.
I certainly worked out I couldn't afford 5x my salary on mortgage when I looked sensibly at all the other costs I have a month, but we already know you underestimate them.
As I'm sure you've mentioned elsewhere, your annual bonus is fairly large whereas most mere mortals won't have that boost to their funds.
Not everyone can be that lucky as to have a guarentee like that. More and more companies are going for a graded structure of getting a score above the excpected level or no pay rise.
Yes and as the other thread showed, most people earn around the 1 - 1.5k a month. i.e covering bills and food. You throw in suddenly needing to do repair work to a house, or even just wanting to simply decorate a room and you're suddenly struggling to afford everything.
I pay my fair share of tax and don't fiddle the system and at the moment, only get about £1,000 a month to live off. Can you explain to me how I can pay less tax please?
How many people can afford to take out an interest only mortgage? Me and my partner have a mortgage of just over 3 times our joint income, and we have had to make a few cutbacks on order to afford it. There would be no way, long term that we could afford an interest only mortgage :no:
Agree completely :yes:
Ricardo - are you classed as being self employed then, or effectively working as freelance? I'm a little confused how a permanent employee of a company is able to use an external (especially offshore) system to to their accounts...? Is it just the way your company operate?
To the others - I work in a similar way myself (although not offshore) as I am a consultant and I pay very little tax, and none of it is fiddling the figures. We're given certain dispensations for expenses etc etc which lower the tax bill a fair old whack.
My take home is around the £4.5k-£5k a month mark at the moment as the contract I am working on right now isn't quite paying what I am used to, but it's nice and close to home so I'm not too bothered. To back Ricardo up here - if there was a legal way for all you guys to pay a lot less tax, you'd sure as hell take it!!
And of course I would pay less tax if I could!