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Lending Multiples

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Just did some simple maths with the NR mortgage calculator.

I haven't really followed their lending criteria but I wondered if anyone else has. There has been speculation that lenders are tightening up a little.

Weren't lenders once offering 4 x salaries or was that just a myth? Also, what multiples do other lenders use?

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Just did some simple maths with the NR mortgage calculator.

I haven't really followed their lending criteria but I wondered if anyone else has. There has been speculation that lenders are tightening up a little.

Weren't lenders once offering 4 x salaries or was that just a myth? Also, what multiples do other lenders use?

I've just been looking at www.moneysupermarket.com (Excellent site by BTW)

Northern Rock came top of a search I did for the best fixed rates but this included an arrangement fee of £7,250 :o

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I've just been looking at www.moneysupermarket.com (Excellent site by BTW)

Northern Rock came top of a search I did for the best fixed rates but this included an arrangement fee of £7,250 :o

Yeah this fixed rate thing is a con. Saw one this morning which was 4.79 for 2 years with no tie-in beyond that.

Then I saw that there's a 1.5% arrangement fee. Erm, what? Doe sit cost twice as much to arrange a 200K mortgage than a 100K one?

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Yeah this fixed rate thing is a con. Saw one this morning which was 4.79 for 2 years with no tie-in beyond that.

Then I saw that there's a 1.5% arrangement fee. Erm, what? Doe sit cost twice as much to arrange a 200K mortgage than a 100K one?

they typically only lend me 3.5x salary unless you have a large deposit and are considered less of a risk.

theres a lot of overblown nonsense about high lending multiples, banks are still quite cautious and its difficult to buckthe system unless you self cert......in which case you also usually need a large deposit.

money isnt being lent as foolishly as you might think - i know , i tried to get as much as i could !

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they typically only lend me 3.5x salary unless you have a large deposit and are considered less of a risk.

theres a lot of overblown nonsense about high lending multiples, banks are still quite cautious and its difficult to buckthe system unless you self cert......in which case you also usually need a large deposit.

money isnt being lent as foolishly as you might think - i know , i tried to get as much as i could !

Last year a bloke I know who earns 10K got a mortage for 50K. The estate agent told him to lie about his salary to the bank, which he did, and he got the money.

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Last year a bloke I know who earns 10K got a mortage for 50K. The estate agent told him to lie about his salary to the bank, which he did, and he got the money.

50k!!. What did he buy??

A beach hut (in need of modernising maybe)

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Last year a bloke I know who earns 10K got a mortage for 50K. The estate agent told him to lie about his salary to the bank, which he did, and he got the money.

I take it this "bloke" in question had a rather large deposit. Although around 5 years ago whilst working in Newtown in Wales, terraced houses were on the market for <£20k.

Another giveaway that he isn't in an affluent area like London is his £10k salary. That's less than £4/hr. Hats off to him though for buying a property while members on this site earning 6 figure salaries claim that they can't afford to :unsure:

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I take it this "bloke" in question had a rather large deposit. Although around 5 years ago whilst working in Newtown in Wales, terraced houses were on the market for <£20k.

Another giveaway that he isn't in an affluent area like London is his £10k salary. That's less than £4/hr. Hats off to him though for buying a property while members on this site earning 6 figure salaries claim that they can't afford to :unsure:

No deposit that i'm aware of, though he has a partner who earns a little more than him I believe. But I thought couples could borrow a lower percentage than single people? By the way, his home is in a less desirable area of Rotherham.

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I take it this "bloke" in question had a rather large deposit. Although around 5 years ago whilst working in Newtown in Wales, terraced houses were on the market for <£20k.

Another giveaway that he isn't in an affluent area like London is his £10k salary. That's less than £4/hr. Hats off to him though for buying a property while members on this site earning 6 figure salaries claim that they can't afford to :unsure:

Many of us could, but were born before 1988. B)

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In big bold type on the webpage you link is the immortal phrase "Your home may be repossessed if you don't keep up the repayments"

My mortgage is with the Alliance and Leicester. We borrowed less than twice joint salary with a 40% deposit. We had to prove income and provide details of the repayment vehicles for the interest only part. Every month we get a statement including very clear warnings about keeping up with repayments and ensuring other finances are in order.

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I take it this "bloke" in question had a rather large deposit. Although around 5 years ago whilst working in Newtown in Wales, terraced houses were on the market for <£20k.

Another giveaway that he isn't in an affluent area like London is his £10k salary. That's less than £4/hr. Hats off to him though for buying a property while members on this site earning 6 figure salaries claim that they can't afford to :unsure:

I could afford to buy a mars bar for £10 - I wouldn't though as it would be overpriced! Get my drift?

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I could afford to buy a mars bar for £10 - I wouldn't though as it would be overpriced! Get my drift?

If you hadn't eaten for 3 days and the aforementioned £10 Mars Bar was your only choice. Would you still refuse to pay?

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Also, what multiples do other lenders use?

When I had a trot around the lenders at the end of July the Woolwich offered me up to 4x my salary and Nationwide offered me up to 4.25x my salary. I was looking at a five year and ten year fix respectively. I offered a 10% deposit and enough cash to pay all the fees - it's just a shame I'd have had nothing left with which to kit the place out!

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If you hadn't eaten for 3 days and the aforementioned £10 Mars Bar was your only choice. Would you still refuse to pay?

No. The human body can go weeks without food. Just like housing. You can go without buying. Just rent, especially when its

cheaper than IO.

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See here...http://forums.moneysavingexpert.com/showthread.html?t=258393

I love this..."5.6 Times my income - partner on maternity leave, but will drop to 3.6 time when she is back at work. Makes me feel a lot better looking at what others owe!"

Thats alright then. As long as every other idiot can't eat, it doesn't matter if I can't!

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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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