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0/t...how much times...

....your earnings can you get a mortgage for?

My husband and I are currently private renting at the moment and we were wondering how many times your current earnings you can get in mortgage. Its only my husband working and his wage will go up every year, Just wondering how much we can get a mortgage for so we know how much we would need to put aside in deposit for different house prices.

Im sure somebody on ehre knows the answer, and saves me having to make a trip to alocal estate agent!

Replies

  • I think the standard is 3.5 times. In the olden days, pre-credit crunch, I think you could get more.

    This is going on our bank - some banks might lend more.

    You know, at current interest rates, our mortgage payments are far less than a private monthly rental would be - so well worth looking into.

    xx
  • I too think the standard (and sensible!) is 3.5 times your annual income. They do reduce the amount you can borrow by the outstanding amount of any debt though so bear that in mind.
    Hope you manage to get something!!
    xx
  • like student debt! If they know yo9u will get a good income like dr does this make any difference?

    Mims - fortunately we know the people we are renting off and its really low as they arent doing it for profit making but so it is occupied image
    I was thinking something like that but my husband thought it was more like 5 times! I thought things were less since the crunch.
  • Hi Joey, you certainly could get 5x before the crunch, but now I just don't know...

    Try some of the banks on-line calculators - We went with first direct, but co-op would have lent us more.

  • The best thing to do is go and see a mortgage advisor, most estate agents have them, and their advise should be free. It would be best to shop around. As mortgage advisors have different products from different lenders. Some still 5 x income. They will take into account any fixed financial commitments like loans etc. Take that off your income and times what's left by what they will lend. But they can also advise you where you stand regarding loan to value. In order to get a better interest rate. Good luck x x
  • They don't do income multipliers for mortgage any more - they do it on monthly affordability now - you have to list your expenditure and you have to have a certain % of free income I think

    Hubby does mortgages at work and I'll ask him when he's done trying to settle my poorly boy
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