Max Lending Amount For Someone On Low Income

[LittleSteroid]

What is the maximum amount that could be lend to someone who has gross earnings of 15k pa, 25k deposit and excellent credit history (999 points @ creditexpert)??? I know every lender is different but I can't find any figures or ratios on their websites.

Also, what difference your earnings make when applied for FTB or BTL mortgage?

Any ideas?

Edited July 6, 2011 by LittleSteroid

[Unsafe As Houses]

What is the maximum amount that could be lend to someone who has gross earnings of 15k pa, 25k deposit and excellent credit history (999 points @ creditexpert)??? I know every lender is different but I can't find any figures or ratios on their websites.

Also, what difference your earnings make when applied for FTB or BTL mortgage?

Any ideas?

Have you checked online mortgage calculators?

The Halifax online mortgage calculator says that they would lend that peron £64.5k

http://www.halifax.co.uk/mortgages/forms/minicalc/container.asp#result

But that doesn't take account of the perfect credit score and deposit.

The Woolwich would lend 60k

http://www.woolwich.co.uk/mortgages/mortgage-calculator.html

But that doesn't take account of the perfect credit score and deposit.

And a big BUT I've no idea if these sums match how much they actually offer when you visit a branch.

[ader]

I think you'll find a lender still willing to lend 5 x income, but you'll pay a higher rate of interest for it.

[SarahBell]

I would ask how long it'd taken you to save £25k and if it's less than 3 years tell you to save another 25k and buy outright.

[AThirdWay]

I would ask how long it'd taken you to save £25k and if it's less than 3 years tell you to save another 25k and buy outright.

£50k? He/she will struggle to get a decent BTL for that!

[DrMartinSanchez]

I think you'll find a lender still willing to lend 5 x income, but you'll pay a higher rate of interest for it.

^ This.

But that would be "stretching your finances" (another expression that makes me want to decapitate EAs) and no one here is going to recommend it.

[W1zard]

Are the historical multiples of 3.5 x income for a single applicant and 2.5 x joint income for two applicants still considered to be normal ? I know the banks totally disregarded these which allowed the inflation to begin but would you guys suggest these historical multiples are used now in order to safeguard against the risk of having huge repayments?

[LittleSteroid]

I would ask how long it'd taken you to save £25k and if it's less than 3 years tell you to save another 25k and buy outright.

6 years, living free in quite big 3 bed shared house with lovely garden. House was on me and I lived there with 4 other guys. They used to work long hours mon-fri, partying heavily over the weekends and never asked me what the real rent is. I think they bellived it's what I said to them. Well, it's business isn't it.

Edited July 6, 2011 by LittleSteroid

[ManorHouseOwner]

its another one!

lets get this right. this cretin steals from his friends for 6 years, winks about it, wants to borrow mega amounts of money despite being on a low income, and he wants to invest in UK property in 2011. he turns to www.housepricecrash.co.uk for advice, and receives lots of emails sucking his manhood.

a new low point for the website.

i hope the thieving pauper loses everything and his hard working friends he stole from buy his repossessed house in 2015. for a sensible price, not the shangri-la prices of 2011.

[Pent Up]

its another one!

lets get this right. this cretin steals from his friends for 6 years, winks about it, wants to borrow mega amounts of money despite being on a low income, and he wants to invest in UK property in 2011. he turns to www.housepricecrash.co.uk for advice, and receives lots of emails sucking his manhood.

a new low point for the website.

i hope the thieving pauper loses everything and his hard working friends he stole from buy his repossessed house in 2015. for a sensible price, not the shangri-la prices of 2011.

[_w_]

You seem so keen and persistent.

So here's the secret: just lie on your mortgage application and buy yourself any odd executive apartment that, as you know, will only go up in value.

[IDN]

its another one!

lets get this right. this cretin steals from his friends for 6 years, winks about it, wants to borrow mega amounts of money despite being on a low income, and he wants to invest in UK property in 2011. he turns to www.housepricecrash.co.uk for advice, and receives lots of emails sucking his manhood.

a new low point for the website.

i hope the thieving pauper loses everything and his hard working friends he stole from buy his repossessed house in 2015. for a sensible price, not the shangri-la prices of 2011.

when you put it like that!:

i couldnt agree with you more! throw the tosser to the lions

[LittleSteroid]

its another one!

lets get this right. this cretin steals from his friends for 6 years, winks about it, wants to borrow mega amounts of money despite being on a low income, and he wants to invest in UK property in 2011. he turns to www.housepricecrash.co.uk for advice, and receives lots of emails sucking his manhood.

a new low point for the website.

i hope the thieving pauper loses everything and his hard working friends he stole from buy his repossessed house in 2015. for a sensible price, not the shangri-la prices of 2011.

Friends? I never said I lived with my firends. Anyway, it would not be a good idea to share house with your friends.

Two guys rent two identical flats. First one pays £500 and another £800. Should owner of the later be considered as a thief? Or maybe tenant is just an drunk idiot? It's "free" market.

I want to borrow 4x yearly income. Is it really MEGA AMOUNT? My mortgage over 20y would be less than I pay now for 1 bed flat .

Finaly if you have any problem with emigration talk to your local MP, don't just throw verbal abuse on the forum. It's not polite.

Edited July 6, 2011 by LittleSteroid

[Milton]

What is the maximum amount that could be lend to someone who has gross earnings of 15k pa, 25k deposit and excellent credit history (999 points @ creditexpert)??? I

Any ideas?

Just Remember that the first time buyer mortgage multiple in 1997 was in a range of 2.3 - 2.5. times salary.

To buy the same FTB home, now, would cost you circa 240%-300% more than it would then!!

And its all due to Government sponsored Bank fraud. Supported by successive crooked governments, who make personal profits from this theft.

And you are in the majority, as over two thirds of UK taxpayers earn less than the UK average wage.

Edited July 6, 2011 by Dan1

[TheCountOfNowhere]

I know what it should be....0

[LittleSteroid]

I know what it should be....0

Are you revealing your true colours? "Only ones with salaries over 30k could be granted mortages. Anyone earning less should rent from them!"

I cant see any problem with borrowing if you can afford repayments. I dont need 4 bed house for 200k.

2 bed for 85k would do.

[LittleSteroid]

i hope the thieving pauper loses everything and his hard working friends he stole from buy his repossessed house in 2015. for a sensible price, not the shangri-la prices of 2011.

Ha, ha, ha that's funny! Remember someone in 2009 saying to me: "r u stupid!? Don't buy now! Wait a year or two. Houses will be cheaper after the crash"

C mon guys, I thought you've realise by now. There will be NO crash, NO interest rate rise over the next 5 years. Yes prices will keep falling for the next 10y but very slowly. You cant afford housing crach. That's the only thing you've got left. Sorry.

[Pent Up]

Ha, ha, ha that's funny! Remember someone in 2009 saying to me: "r u stupid!? Don't buy now! Wait a year or two. Houses will be cheaper after the crash"

C mon guys, I thought you've realise by now. There will be NO crash, NO interest rate rise over the next 5 years. Yes prices will keep falling for the next 10y but very slowly. You cant afford housing crach. That's the only thing you've got left. Sorry.

In that case better get yourself out there and buy now! You'll probably be better posting your queries on MSE. What kind of response did you expect posting about buying a BTL on a website called housepricecrash?

[beccles]

Ha, ha, ha that's funny! Remember someone in 2009 saying to me: "r u stupid!? Don't buy now! Wait a year or two. Houses will be cheaper after the crash"

C mon guys, I thought you've realise by now. There will be NO crash, NO interest rate rise over the next 5 years. Yes prices will keep falling for the next 10y but very slowly. You cant afford housing crach. That's the only thing you've got left. Sorry.

What are you doing on this forum then? Try this one:-

My link

[Bloo Loo]

Are the historical multiples of 3.5 x income for a single applicant and 2.5 x joint income for two applicants still considered to be normal ? I know the banks totally disregarded these which allowed the inflation to begin but would you guys suggest these historical multiples are used now in order to safeguard against the risk of having huge repayments?

the banks "officially" still had these criteria till about 2006, when one or two broke ranks and "officially" offered 5 times salary for those with a high income.

Of course, Liar Loans in the case of IFAs were rife since 2001.

[Milton]

My link

LOL. Jeesus. I cant believe that.

May I recommend this one to the OP?

The 'Troll Doll'

Edited July 6, 2011 by Dan1

[thejaksie]

I think the reason why others are responding this was maybe needs a bit of justification.

Therefore I would like to ask whether you have genuinly considered the magnitude of the debt you are taking on? For instance:

Let's assume take home pay of £1,000 net per month and a £60K mortgage.

Your monthly costs (20 year repayment), assuming 5% rates is approx £400, or 40% of your net salary.

However, 5% interest rates over a 20 year period is an unreatistic assumption so re-adjust to more historical levels ., say 7%. Your monthly costs goes up to £465.

This excludes maintenance and other refurbishments. In other words you could be facing paying up to 50% of your net salary towards the bank. Now factor in other changes, job loss, expanding family, unexpected maintenance... and you see that borrower 4x your salary could end up being very painful.

And I haven't even discussed a shock in interest rates like the 90s (12%)

Interesting statistic: it would take 5 years of all your net earnings to pay down the debt.

If you then on top assume you see house prices going down over the next 10 years you would always sell at a loss?

What is your reason to buy the house in the first place?

[LittleSteroid]

ahhhh yes.

i thought you would show your colours in a few posts.

fact fella it is crashing

fact fella 25k is peanuts

fact fella you aint gonna get a 10x morgage (liar loan)

thats funny

fact fella it is crashing : so -3.5% yoy you call a crash?

fact fella 25k is peanuts: many people would disagree. In fact most of them have exactly the same amount but the only difference is..they OWE it.

fact fella you aint gonna get a 10x morgage (liar loan) - I am not looking for one. I never would.

[LittleSteroid]

I think the reason why others are responding this was maybe needs a bit of justification.

Therefore I would like to ask whether you have genuinly considered the magnitude of the debt you are taking on? For instance:

Let's assume take home pay of £1,000 net per month and a £60K mortgage.

Your monthly costs (20 year repayment), assuming 5% rates is approx £400, or 40% of your net salary.

However, 5% interest rates over a 20 year period is an unreatistic assumption so re-adjust to more historical levels ., say 7%. Your monthly costs goes up to £465.

This excludes maintenance and other refurbishments. In other words you could be facing paying up to 50% of your net salary towards the bank. Now factor in other changes, job loss, expanding family, unexpected maintenance... and you see that borrower 4x your salary could end up being very painful.

And I haven't even discussed a shock in interest rates like the 90s (12%)

Interesting statistic: it would take 5 years of all your net earnings to pay down the debt.

If you then on top assume you see house prices going down over the next 10 years you would always sell at a loss?

What is your reason to buy the house in the first place?

10 years fixed, Yorkshire, 4.99 APR, £400 p/month + overpayment facility

Expanding family? Not a problem with monthly benefits exceeding monthly repayment.

After 20 years there is no mortgage so no rent to pay.

Unexpected maintenance? I can always put it on my credit card. As I only work 37 hours a week and have a lot of spare time I can always take on another job and repay credit ASAP.

I do not stretch myself financialy. Like I said, my rent is higher than mortgage repayments could be. What other option have I got, even if I think of getting married and having kids?

Edited July 6, 2011 by LittleSteroid

[pete.hpc]

re-adjust to more historical levels ., say 7%.

Have average mortgage rates ever been 7% for a prolonged period?