Jump to content
House Price Crash Forum
terryturbojr

Barclays Appear Happy To Lend Me 5.5X Salary

Recommended Posts

Using their online calculator right? I've noticed this whereas most other calculators come up about £30,000+ less than theirs. Can only think it's to get you all excited at the possibility of all that extra debt you're allowed and through the door to see an advisor (where the amount no doubt reduces but they are more likely to get your custom?).

Share this post


Link to post
Share on other sites

Yeah. Just have it a click when logging into online banking.

Always thought they were at the tight end of lending. As you said could just be a teaser though.

Edited by terryturbojr

Share this post


Link to post
Share on other sites

Yeah. Just have it a click when logging into online banking.

Always thought they were at the tight end of lending. As you said could just be a teaser though.

you could be lying about your salary.

IIRC you have an enormous wage.

Share this post


Link to post
Share on other sites

It's not bad. I could probably get a mortgage to buy a 2 bed ex-LA flat in Hackney without lying on the application. Or a 1970s 3 bed cul de sac home in High Wycombe if I didn't mind the commute. As such I feel like I've made it in life.

Share this post


Link to post
Share on other sites

It's not bad. I could probably get a mortgage to buy a 2 bed ex-LA flat in Hackney without lying on the application. Or a 1970s 3 bed cul de sac home in High Wycombe if I didn't mind the commute. As such I feel like I've made it in life.

it is important as clearly someone on a high salary has much more headroom than a person on average wage.

So, without the figures, the thread is meaningless.

Share this post


Link to post
Share on other sites

it is important as clearly someone on a high salary has much more headroom than a person on average wage.

So, without the figures, the thread is meaningless.

I agree. But my 30k attempt would suggest Barclays don't.

Last time I got a mortgage they had a table of salary vs multiplier, but didn't think it went as far as 5.5x hence surprise on Barclays site.

Edited by terryturbojr

Share this post


Link to post
Share on other sites

yes i actually remortgaged with them the other week, they were happy to offer me 5. times - didnt take that amount, but it was being dangled in front of me by the adviser.

Share this post


Link to post
Share on other sites

yes i actually remortgaged with them the other week, they were happy to offer me 5. times - didnt take that amount, but it was being dangled in front of me by the adviser.

before MMR. your point being?

Share this post


Link to post
Share on other sites

It's not bad. I could probably get a mortgage to buy a 2 bed ex-LA flat in Hackney without lying on the application. Or a 1970s 3 bed cul de sac home in High Wycombe if I didn't mind the commute. As such I feel like I've made it in life.

That is the thing. 5.5 times salary is completely crazy, but it still doesn't help you catch up with prices as they stand.

2 bed flats in my area of outer London are now about £450k. I would have thought that was a fairly reasonable starter home, but you'd need to be earning almost £80k to afford one with a 5% deposit and a 5.5x mortage. Make the deposit a reasonable size and the mortgage a reasonable multiple and you'd need to be well into six figures.

Share this post


Link to post
Share on other sites

I might well apply for a mortgage in principal with Barclays in the next couple of weks to see how much they are lending and what the MMR process is like. I am sure that it can't be any harder that it was getting a mortgage in principal in Ireland.

I am fairly lucky compared to those in London. We are looking between £200k for a 3 bed detached bungalow and £250k for a 4 bed detached house in this area. These are good prices, plenty of 'not giving it away' tat on the market for much more.

I like the idea of the 10 year fixed rate at <4%.

I wouldn't be in a hurry to buy a house but we are going to start a family soon and I have just hit 35, so the mortgage terms are getting worse. To be honest I am happy renting, but after moving nearly 30 times I need some stability for the next few years.

Share this post


Link to post
Share on other sites

it is important as clearly someone on a high salary has much more headroom than a person on average wage.

So, without the figures, the thread is meaningless.

Pfft. A high income may evaporate. If you're in debt when it does, you've got a harder job replacing it :o

Share this post


Link to post
Share on other sites

Pfft. A high income may evaporate. If you're in debt when it does, you've got a harder job replacing it :o

Agreed, there must be loads of people on £100k plus wages in london that would struggle to emulate hte salary in the event of a redundancy. I know of one, he is renting though and has decided to move back to france as the cost of rents in London does not justify the risk of not being able to find a comaprable salary any time soon.

Share this post


Link to post
Share on other sites

http://www.woolwichintermediaries.co.uk/WoolwichMortgages/Affordabilitycalculator/IP1242620961812

Not sure if the link will work but looks to be a post mmr mortgage calc. I Plugged some numbers and it told me unaffordable.

Edit: oh my is this working? I tried to borrow 100k on 30k salary and computer said no!

I just plugged in a couple both on average full time salary and it allowed over 5x joint income.

EDIT: On further playing about it appears to be saying you need to budget for £124 per month for each child.

EDIT2: And they seem to be using a rise in IRs to 6.74% to test affordability - not the 7% that I thought was mandated.

Edited by oldsport

Share this post


Link to post
Share on other sites

I am fairly lucky compared to those in London. We are looking between £200k for a 3 bed detached bungalow and £250k for a 4 bed detached house in this area. These are good prices, plenty of 'not giving it away' tat on the market for much more.

I like the idea of the 10 year fixed rate at <4%.

I wouldn't be in a hurry to buy a house but we are going to start a family soon and I have just hit 35, so the mortgage terms are getting worse. To be honest I am happy renting, but after moving nearly 30 times I need some stability for the next few years.

Good luck, I hope you find the place you want at a decent price.

Share this post


Link to post
Share on other sites

I just plugged in a couple both on average full time salary and it allowed over 5x joint income.

EDIT: On further playing about it appears to be saying you need to budget for £124 per month for each child.

EDIT2: And they seem to be using a rise in IRs to 6.74% to test affordability - not the 7% that I thought was mandated.

Thanks. I entered Edit: I am not convinced I haven't entered all numbers correctly and or the calculator works correctly.

Edit2: on second read they make assumptions aa excludes some costs in other section.

Edited by Ash4781

Share this post


Link to post
Share on other sites

Thanks. I entered 150 council tax , 500 other costs (240 food, 70 energy, 90 fuel, 30 telephony, 70 balancin item), 5% interest , 100k loan on 30k before tax salary. The model returned unaffordable. Though at 400 other costs it returned affordable. I think I can see the games the mortgage sellers will play :).

Edit: I am not convinced I haven't entered all numbers correctly and or the calculator works correctly.

It says other costs "Excluding living expenses, clothes, food or utilities " . I couldn't see any place to put these so assumed it used its own assumptions for these.

EDIT I also entered £150 council tax

EDIT one of us has done it wrong!

Edited by oldsport

Share this post


Link to post
Share on other sites

It says other costs "Excluding living expenses, clothes, food or utilities " . I couldn't see any place to put these so assumed it used its own assumptions for these.

EDIT I also entered £150 council tax

it is interesting that the assume there because bulk of my costs are there.

Me. yours is correct!

Edited by Ash4781

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   206 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.