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Affordability Vs Salary Multipliers

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Since the introduction of the MMR rules, are lenders tending to lean more towards affordability over multipliers?

I'm a homeowner (jointly with partner) looking to move somewhere bigger next year and the mortgage we'd be looking for would be 5-5.5 x our joint income, which of course is high. On the affordability front, based on current rates we seem to be able to afford it comfortably with around £2k to spare after deducting the new mortgage payment, council tax, debt (only sofa on finance). We do have one child, but no childcare costs. Appreciate other lifestyle expenditure will be looked at, but I wouldn't say we pay anything above average on that front either.

We'd also be looking at a LTV of just under 90%, which I appreciate is also not in our favour.

So, are we better off to start planning for this not to happen or is it worth enduring the mortgage interview when the time comes?

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Thanks Wurzel. Quick recalculation looks like leaving us around £1300 with the rate at 7%.

Any idea what lenders are looking for in terms of free income criteria these days? Back when I used to deal with these things I think £700 used to be ok, but I dare say that's increased by now!

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When I went to Halifax to look at remortgaging, they offered 4 x my salary and took travel and childcare costs into affordability, not a lot else and noted to us that they would not be looing into 'lifestyle' costs. This was with 60% LTV.

The full list is below:

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  • 404 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
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      • up 5%



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