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what income multiplier did you take out on your mortgage?

(18 Posts)
Piffle Tue 05-Aug-08 18:32:08

not after actuals just curious about what is average
3 x salary?
More
Both incomes or how do they calculate it?
Dp is curious as he thinks 3x salary is high but I say plenty get mortgages on bigger multipliers thanthat?

Tortington Tue 05-Aug-08 18:33:24

we worked out our mortgage on what repayments we could comfortably afford

i think thats the best way of going about it really

butterflybessie Tue 05-Aug-08 18:34:02

We did it on 6blush

Have to point out that it was on two houses and one is rented out, which pays for half our enormous mortgage grin

Nagapie Tue 05-Aug-08 18:35:55

Taking our mortgage out when money was being splashed about, it was 3x DH's salary

agree with Custardo

Twiglett Tue 05-Aug-08 18:36:31

7 years ago was 2 times joint salary

Piffle Tue 05-Aug-08 18:37:26

concur on affordability being better gauge. We have just remortgaged to put in kitchen and this is why qu came up
Dp assumed affordability would be questioned by bank but all they said was you're well under 3.25 multiplier so no worries!!!!!!
He was shocked

ChasingSquirrels Tue 05-Aug-08 18:39:34

in Jan 01 ours was just under joint salary x3. Comfortably affordable, fixed rate and salaries expected to, and did, increase.
I wouldn't have taken more than we could have afforded if one uf us had lost our job. Not sure what I would do now as a single parent though.

NotDoingTheHousework Tue 05-Aug-08 18:43:02

Message withdrawn

NotDoingTheHousework Tue 05-Aug-08 18:43:48

Message withdrawn

Nagapie Tue 05-Aug-08 18:43:51

Wasn't there a thread here recently that argued that mortgage payments should only be about 40% of the household outgoings - IMO a better calculator ...

Piffle Tue 05-Aug-08 18:43:56

in 1998 I got 2.25 my 25 hrs part time salary as single parent .
Affordability was something I struggled with though after 6weeks off unpaid after back injury falling down said new houses stairs...

Sobernow Tue 05-Aug-08 18:45:31

Message withdrawn at poster's request.

Sobernow Tue 05-Aug-08 18:46:21

Message withdrawn at poster's request.

NorthernLurker Tue 05-Aug-08 18:47:00

Ours is just over 3x - but like a lot of other people we were looking at affordability. I looked at what we could afford to pay then worked out what that would be a loan of and therefore what we could afford to buy. It's madness to do it the other way around imo - ie look at what you want to buy then work out how you can scrape the funds together.

lilQuidditchKel Tue 05-Aug-08 18:47:41

IME banks will offer you more than you should borrow.

I was offered 5x for my first flat. shock

Only borrowed 2.75x and was a v good idea.

Currently about 3x, only on DH salary as I am SAHM now. cash strapped emoticon

DontCallMeBaby Tue 05-Aug-08 18:53:32

Current one was a shade under 2.5 x joint salary when we took it out in 2001. It was done on affordability though - one bank (possibly building soc actually, Nationwide) were prepared to lend over 4x, ouch.

notcitrus Tue 05-Aug-08 19:12:21

In 2005, we were approved for 5x MrNC's salary by our mortgage-holder (Nationwide), but even with no other debts, no kids, my earnings + limited outgoings we thought that was barking! The repayments would have been 70% his salary.

Went for 2.6x his salary, but had lot of equity from previous flat going up in value - previous mortgage was 3x his salary as I wasn't earning then.

It used to be max 3x one salary or 2.5x combined as a hard limit, until all the banks went mad in the last 10 years.

My parents back in 1972 had a 30% deposit, only wanted 2x my dad's very secure salary, and still needed a specialist broker to find them a lender 200 miles away who was willing to lend to them, because all the banks were so strapped for cash!

MegBusset Tue 05-Aug-08 19:15:06

We have got about 3x DH's earnings (though he is self-employed so they are variable). I am on a very low wage (self-employed very part-time as I look after DS) so that isn't taken into consideration.

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