mortgage multipliers

[dee]

Anyone have any insight in to current realistic income multipliers for mortgages ? Everywhere I look just says you need to apply. I'm in London so would need to be on the higher side.

 

[martin-s]

4 with a stretch to 4.5 ish is about normal.

https://www.moneysavingexpert.com/mortgages/how-much-mortgage-borrowing

 

[dee]

Okay.... so it hasnt tightened that much then.

 

[martin-s]

Well, for self employed it has. But even then Barclays Woolwich are pretty flexible if you can put 2-3 years of income history together.

 

[Grant]

I got just over 4x around 20 months ago with a 10% deposit, but I was employed at the time. My mortgage advisor said if I need a mortgage now, 2 years SE income, or go and get a job for 1 month...which seems crazy!

 

[dee]

From what i've researched so far, it's not as straight forward as it just being a multiplier any more. They rate you more on the "affordiblity" factor. If you have kids... they're expensive so you get less mortgage... credit card payments...live in an an expensive area like London...you'll need more cash day to day so lesser mortgage.

 

[Adam H]

Yeah your affordability is the killer for most even when you can clearly afford an extra £100 a month on the mortgage etc they can be real dicks about it. The better deposit you have will reduce the loan to value percentage which then brings down your monthly payments and affordability. The days of 100% mortgage are long gone but there are still some good providers around that do 90% such as Natwest. We done ours with a 20% deposit and they only asked for 2 years SA 302's from me and the other half's part time pay slips.

 

[dee]

I'm employed so no problem with p60's etc, and were selling a flat. The issue is that since i bought it 12 odd years ago (how much do you want ? ooh... self cert sir ? no problem , have the martgage) where we live your looking at least half a mill for even the smallest of houses these days and we need another room having gone from none to two kids in that time. Maybe a good time to head to the country..

 

[Adam H]

. Maybe a good time to head to the country..

Half a mill around here ( Norfolk ) would buy a nice converted barn, open plan with all the trimmings and a decent whack of land, we've got a 4 bed detached we brought 2 years ago for £180k in a nice quiet village. Pick it up and put it down south id imagine you'd pay nearly half a mill at a guess. Cost of living around here, especially if you don't want to be in town is exceptional, we are 10 mins away from 3 different towns and an hour away from 2 Citys ( 3 if you count Cambridge on the train 45 mins, and London Kings cross in 90 mins ).

 

[dee]

Half a mill around here ( Norfolk ) would buy a nice converted barn, open plan with all the trimmings and a decent whack of land, we've got a 4 bed detached we brought 2 years ago for £180k in a nice quite village. Pick it up and put it down south id imagine you'd pay nearly half a mill at a guess. Cost of living around here, especially if you don't want to be in town is exceptional, we are 10 mins away from 3 different towns and an hour away from 2 Citys ( 3 if you count Cambridge on the train 45 mins, and London Kings cross in 90 mins ).

I know. I've been looking at coastal Cornwall and what you get for your money is amazing. Trouble is we love it round here and ideally i'd like to stick the job out for a bit as I actually enjoy it. Half a mill here is a small 3 bed terrace in not great condition that needs work/updating.