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NEO72

Anybody Applied For A Mortgage Lately?

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Just on the interweb wondering what I could lend when the time comes and two things struck me. Firstly, how many lenders don't have the "how much can I borrow" calculator on their website anymore. And secondly, the two I found that did (Woolwich and HSBC I think) would only lend just over 2X (in one case) or max 3X (the other) our joint income, which is pretty much UK average household income - and this is assuming a 50K deposit :o

If this is representative and lending has tightened up that much (I can remember 5/6X joint income, regardless of deposit, on similar calculators pre-crunch) then the housing market really is toast!

Has anybody here (especially FTBs) actually applied for a mortgage recently - what max income multiple were you offered?

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Just on the interweb wondering what I could lend when the time comes and two things struck me. Firstly, how many lenders don't have the "how much can I borrow" calculator on their website anymore. And secondly, the two I found that did (Woolwich and HSBC I think) would only lend just over 2X (in one case) or max 3X (the other) our joint income, which is pretty much UK average household income - and this is assuming a 50K deposit :o

Excellent news! [Rubs hands] B)

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Dont really see it myself.

Post office is

4.5 x main income plus 1 x second income or 4 x joint income if greater. At least one applicant must have a minimum income of £15,000.

Leeds BS

90% max Up to £400,000 4.00 x 3.25 x or 4.00 x main plus 1 x second

85% max Up to £500,000 4.25 x 3.50 x or 4.25 x main plus 1 x second

80% max Up to £750,000 4.50 x 3.75 x or 4.50 x main plus 1 x second

75% max Up to £750,000 4.50 x 3.75 x or 4.50 x main plus 1 x second

50% max Up to £750,000 4.50 x 3.75 x or 4.50 x main plus 1 x second

Edited by FIGGY

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Just on the interweb wondering what I could lend when the time comes and two things struck me. Firstly, how many lenders don't have the "how much can I borrow" calculator on their website anymore. And secondly, the two I found that did (Woolwich and HSBC I think) would only lend just over 2X (in one case) or max 3X (the other) our joint income, which is pretty much UK average household income - and this is assuming a 50K deposit :o

If this is representative and lending has tightened up that much (I can remember 5/6X joint income, regardless of deposit, on similar calculators pre-crunch) then the housing market really is toast!

Has anybody here (especially FTBs) actually applied for a mortgage recently - what max income multiple were you offered?

this is not due to cruch anymore, If the bank think a average house will drop 20% price, then they won't lend more than 70% of the value of the house price. and BH, if they think there is a big risk of people losting job. evn for muliple X2 will still make them unafforable.

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I'm seeing Halifax on Monday as I'm tempted by an auction. So I'll see how much they will lend.

This auction - can anyone advise. When the vendor states CASH ONLY do they mean no mortgages at all?

I'm think they have had a few sales fall through - due to lack of mortgage finance? Or should that ring alarm bells re: condition?

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I'm seeing Halifax on Monday as I'm tempted by an auction. So I'll see how much they will lend.

This auction - can anyone advise. When the vendor states CASH ONLY do they mean no mortgages at all?

I'm think they have had a few sales fall through - due to lack of mortgage finance? Or should that ring alarm bells re: condition?

Beware it may be un mortgagable due to structural or other problems. it may be worth getting a survey done beforehand.

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Well, 3.75 joint with Barclays, 15% deposit... not offer but accepted in principle paperwork in should know next week.

One thing I did find is that in most cases apart from Nationwide, most lenders will not offer interest only. I wanted IO to give me flexibilty...but not at 15%dep they wont have it. Also before you could switch between the two if required, but most mortgages offered under 25% now not a chance.

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So it looks like 4x joint with the PO is about the highest. Aren't they the bank of Ireland-hmm..

PU - who was yours with?

Sorry forgot to put it was Nationwide.

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Last summer I know someone self employed on £23k who was worried about being able to get £93k from Lloyds.

He had £75k cash and wanted to buy a house for £168k so 55% LTV

They offered him £115k (5x). He took £93k on a 2 year fix and they stuck a £2k fee onto the mortgage.

He bought the house and hates it. The house he bought wasn't at all what he had been looking for - it was like going out looking for a shirt and coming home with a pair of trousers. It didn't help that his "dream house" came on late last year for not much more than he had bought this one for.

He was renting a lovely 5 bedroomed farmhouse for £600 a month from a decent landlord before he bought.

It's not may fault I tried to tell him.... :(

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I've been trying HSBC calculator:

https://mortgages.hsbc.co.uk/how-much-can-I-borrow/?step=0

For 30 year old earning 28K with 25K deposit, you can borrow 98K.

So that's exactly 3.5 income, innit?

(3.5 x 28=96)

Just tried that using your £28k income as a FTB and a deposit not property value

Using £11k it's a 90% LTV at £98k so 3.5

Using £110k it's a 53% LTV at £126k so 4.5

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Just tried that using your £28k income as a FTB and a deposit not property value

Using £11k it's a 90% LTV at £98k so 3.5

Using £110k it's a 53% LTV at £126k so 4.5

But with a 53% LTV they are not really providing a mortgage. HSBC are limiting any exposure

by either the house price being so low it's close to a realistic income multiple or the cash

deposit being so high any falls won't touch their asset.

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I just checked the HSBC calculator and can confirm that they wouldn't lend me anything like the amount of money they did in 2007 based upon the salary I was on then.

They're no fun any more...

Edited by Froggee

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I’ve not actually applied for anything, but out of curiosity I just went onto the Nationwide web site, and was a bit shocked to find them offering me 4½ times my single salary, with a deposit of £180,000 and no other regular outgoings.

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We've not tried to see .., but then we have reached a stage in life where we are downsizing to something small enough to keep family and kids from visiting and stopping over ... And consequently since I was made to take a forced early redundancy/retirement ... Now want somewhere small enough for 2 of us that we can buy outright

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I am not seeing it. I am buying for the first time, borrowing a little more than twice joint salary. When the mortgage advisor ran us through the affordability analysis, they were prepared to lend us £315,000. No way could we afford to pay back a loan that size.

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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