terryturbojr Posted May 2, 2014 Share Posted May 2, 2014 Which may explain what is funding the current boom. Quote Link to comment Share on other sites More sharing options...
Kablooi Posted May 2, 2014 Share Posted May 2, 2014 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?). Quote Link to comment Share on other sites More sharing options...
terryturbojr Posted May 2, 2014 Author Share Posted May 2, 2014 (edited) 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 May 2, 2014 by terryturbojr Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted May 2, 2014 Share Posted May 2, 2014 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. Quote Link to comment Share on other sites More sharing options...
terryturbojr Posted May 2, 2014 Author Share Posted May 2, 2014 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. Quote Link to comment Share on other sites More sharing options...
terryturbojr Posted May 2, 2014 Author Share Posted May 2, 2014 It would put me at the high end of multiples though. I dont think they'd offer me 5.5x if I earnt 30k a year. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted May 2, 2014 Share Posted May 2, 2014 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. Quote Link to comment Share on other sites More sharing options...
terryturbojr Posted May 2, 2014 Author Share Posted May 2, 2014 Actually, I stand corrected, sticking 30k in their yields 165k too. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted May 2, 2014 Share Posted May 2, 2014 Very generous of them. Are you taking them up on the offer? Quote Link to comment Share on other sites More sharing options...
terryturbojr Posted May 2, 2014 Author Share Posted May 2, 2014 (edited) 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 May 2, 2014 by terryturbojr Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted May 2, 2014 Share Posted May 2, 2014 Actually, I stand corrected, sticking 30k in their yields 165k too. Jesus Wept. Quote Link to comment Share on other sites More sharing options...
Milkshock Posted May 2, 2014 Share Posted May 2, 2014 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. Quote Link to comment Share on other sites More sharing options...
Milkshock Posted May 2, 2014 Share Posted May 2, 2014 Im sure didnt give them my payslips either Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted May 2, 2014 Share Posted May 2, 2014 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? Quote Link to comment Share on other sites More sharing options...
worried1 Posted May 2, 2014 Share Posted May 2, 2014 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. Quote Link to comment Share on other sites More sharing options...
Wurzel Of Highbridge Posted May 2, 2014 Share Posted May 2, 2014 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. Quote Link to comment Share on other sites More sharing options...
porca misèria Posted May 2, 2014 Share Posted May 2, 2014 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 Quote Link to comment Share on other sites More sharing options...
worzel Posted May 2, 2014 Share Posted May 2, 2014 Pfft. A high income may evaporate. If you're in debt when it does, you've got a harder job replacing it 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. Quote Link to comment Share on other sites More sharing options...
Ash4781 Posted May 2, 2014 Share Posted May 2, 2014 (edited) 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! Edited May 2, 2014 by Ash4781 Quote Link to comment Share on other sites More sharing options...
Liquid Goldfish Posted May 2, 2014 Share Posted May 2, 2014 (edited) 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 May 2, 2014 by oldsport Quote Link to comment Share on other sites More sharing options...
Limon Posted May 2, 2014 Share Posted May 2, 2014 Nationwide's calculator gave me an estimate of just under 5x joint income for me + the missus. Good to see MMR enforcing prudent and sustainable lending practices. http://www.nationwide.co.uk/products/mortgages/our-mortgages/tools-and-calculators/how-much-could-you-borrow Quote Link to comment Share on other sites More sharing options...
silver surfer Posted May 2, 2014 Share Posted May 2, 2014 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. Quote Link to comment Share on other sites More sharing options...
Ash4781 Posted May 3, 2014 Share Posted May 3, 2014 (edited) 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 May 3, 2014 by Ash4781 Quote Link to comment Share on other sites More sharing options...
Liquid Goldfish Posted May 3, 2014 Share Posted May 3, 2014 (edited) 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 May 3, 2014 by oldsport Quote Link to comment Share on other sites More sharing options...
Ash4781 Posted May 3, 2014 Share Posted May 3, 2014 (edited) 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 May 3, 2014 by Ash4781 Quote Link to comment Share on other sites More sharing options...
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