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goldmercury

What Lenders To 4x > Income?

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Yorkshire Building Society offered to lend us 4X's joint salary, the only proviso was that you need a good credit rating. And they are at the conservative end of the scale. (When we moved back in '98 we had to beg them to lend us slightly more than 2.5 times joint salary - we had a good credit rating back then as well but we got still got the third degree on why we weren't married etc! Things have changed.)

Last time we put an offer in for a house (about six months) ago the estate agent's mortgage salesperson "financially verified" our offer, and tried to push us to make a higher offer on the basis that we could easily borrow 5X's joint salary. I said no thanks.

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Last time we put an offer in for a house (about six months) ago the estate agent's mortgage salesperson "financially verified" our offer, and tried to push us to make a higher offer on the basis that we could easily borrow 5X's joint salary. I said no thanks.

Did you get the house?

Billy Shears

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Did you get the house?

Billy Shears

No we didn't. My view was that the house was alot of money, but still significantly undervalued for what it was (I think they did that to generate interest). I know a 'bargain' when I see one. Unusually for the market, but not surprising given the house, it went for a lot more so it's not as if we just missed out. Since then we have sold to rent, and are now sitting tight. No rush.

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No we didn't. My view was that the house was alot of money, but still significantly undervalued for what it was (I think they did that to generate interest). I know a 'bargain' when I see one. Unusually for the market, but not surprising given the house, it went for a lot more so it's not as if we just missed out. Since then we have sold to rent, and are now sitting tight. No rush.

Interesting. The estate agent probably knew what the gig was and therefore the pressure to get you to up the bid. They knew it wasn't selling for that.

Billy Shears

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as titled just want to get an idea of what lenders lend 4x salary and upwards. I heard some do 6, is this true?

Believe it or not if you can come up with a 25% deposit many lenders will hardly look at what the income multiples are

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Last time we put an offer in for a house (about six months) ago the estate agent's mortgage salesperson "financially verified" our offer, and tried to push us to make a higher offer on the basis that we could easily borrow 5X's joint salary. I said no thanks.

When I buy my house I will never tell the anyone in the EAs office what I earn+my deposit and can actually afford. Because of exactly the reason you stated!

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I have been told that once the money you have available as deposit is big enough (as a percentage of the proprty you are purchasing) then income multiples are pretty much ignored.

For example if you have £150K equity to use as deposit on a £350K house you will get a mortgage (provided you are earning a reasonable amount).

Their view is if you default they will get their money back as its unlikely the house will drop below £150K in value so whats the risk to them. Minimal.

Risk is what it comes down to - they dont give a damm about whether you will be consuming just bread and water for 25 years just so long as :-

1. Their risk is low enough

2. You make the payments

Its business - not nice - just business to them.

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The estate agent probably knew what the gig was and therefore the pressure to get you to up the bid. They knew it wasn't selling for that.

Yes - they had just received the other (much higher) bid but wouldn't tell me what it was until they had 'financially verified it'. Basically we were out of our league.

(Although this has reminded me to find the actual transaction at the land registry. It's a funny address so I can't get the info online. Always nice to check the facts against what we were told at the time.)

When I buy my house I will never tell the anyone in the EAs office what I earn+my deposit and can actually afford. Because of exactly the reason you stated!

Yes you are right. But unfortunately it's not quite as easy as that - the estate agents are the ones who recommend to the vendor which offer to accept. Of course the whole financial verification business is a load of rubbish and is mainly so they can sell you a mortgage - they ask you questions over the phone and I bet alot of people lie. How to get round this I am not sure. You want to leave them in no doubt that you are good for your money in terms of the offer you have made, but on the other hand you don't want to reveal any information, tricky. There are some flaky buyers out there - how do you prove you are not one of them?

(Not in a rush to buy at the moment, but will have to cross this bridge eventually.)

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  • 301 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
      • up 2.5%
      • up 5%



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