NEO72 Posted February 25, 2011 Share Posted February 25, 2011 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 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? Quote Link to comment Share on other sites More sharing options...
longtomsilver Posted February 25, 2011 Share Posted February 25, 2011 Applied with YBS in nov10 offered 0.78x salary (required 1.25x) so applied with another in Jan and got it. 25% deposit BTW Quote Link to comment Share on other sites More sharing options...
Pent Up Posted February 25, 2011 Share Posted February 25, 2011 Febuary 2010 I was offered 4x joint income, 40% deposit. Much more than I would want to have to repay. Quote Link to comment Share on other sites More sharing options...
7clubs Posted February 25, 2011 Share Posted February 25, 2011 February 2010 - 5.5x joint income, 5% deposit. Mind you, that was in Australia...... Quote Link to comment Share on other sites More sharing options...
General Congreve Posted February 25, 2011 Share Posted February 25, 2011 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 Excellent news! [Rubs hands] Quote Link to comment Share on other sites More sharing options...
FIGGY Posted February 25, 2011 Share Posted February 25, 2011 (edited) 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 February 25, 2011 by FIGGY Quote Link to comment Share on other sites More sharing options...
yoman Posted February 25, 2011 Share Posted February 25, 2011 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 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. Quote Link to comment Share on other sites More sharing options...
23rdian Posted February 25, 2011 Share Posted February 25, 2011 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? Quote Link to comment Share on other sites More sharing options...
Pauly_Boy Posted February 25, 2011 Share Posted February 25, 2011 3x single salary at 55% LTV with First direct = approved. Quote Link to comment Share on other sites More sharing options...
Pent Up Posted February 25, 2011 Share Posted February 25, 2011 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. Quote Link to comment Share on other sites More sharing options...
NEO72 Posted February 25, 2011 Author Share Posted February 25, 2011 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? Quote Link to comment Share on other sites More sharing options...
D179 Posted February 25, 2011 Share Posted February 25, 2011 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. Quote Link to comment Share on other sites More sharing options...
Pent Up Posted February 25, 2011 Share Posted February 25, 2011 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. Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted February 25, 2011 Share Posted February 25, 2011 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.... Quote Link to comment Share on other sites More sharing options...
red Posted February 25, 2011 Share Posted February 25, 2011 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) Quote Link to comment Share on other sites More sharing options...
Pent Up Posted February 25, 2011 Share Posted February 25, 2011 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) 30 year mortgage?? No thanks!! Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted February 25, 2011 Share Posted February 25, 2011 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 Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted February 25, 2011 Share Posted February 25, 2011 30 year mortgage?? No thanks!! Did you see Panorama on Monday? A girl was 3 years into a 40 year mortgage for a house worth 50% of what she had paid. Quote Link to comment Share on other sites More sharing options...
Pent Up Posted February 25, 2011 Share Posted February 25, 2011 Did you see Panorama on Monday? A girl was 3 years into a 40 year mortgage for a house worth 50% of what she had paid. Yeah, madness!! Quote Link to comment Share on other sites More sharing options...
bubble1 Posted February 25, 2011 Share Posted February 25, 2011 Been offered quite high multiples from HSBC - 4.5X joint income (with 40%+ deposit); Weirdly first direct offered quite a bit less. Quote Link to comment Share on other sites More sharing options...
northwestsmith2 Posted February 25, 2011 Share Posted February 25, 2011 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. Quote Link to comment Share on other sites More sharing options...
Froggee Posted February 25, 2011 Share Posted February 25, 2011 (edited) 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 February 25, 2011 by Froggee Quote Link to comment Share on other sites More sharing options...
Muswell Hillbilly Posted February 25, 2011 Share Posted February 25, 2011 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. Quote Link to comment Share on other sites More sharing options...
chrismar Posted February 26, 2011 Share Posted February 26, 2011 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 Quote Link to comment Share on other sites More sharing options...
yasdnil Posted February 26, 2011 Share Posted February 26, 2011 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. Quote Link to comment Share on other sites More sharing options...
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