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Pls feel free to name change but I would like to know what income multipliers you have been offered on mortgages and whether you accepted them.

(111 Posts)
CountessDracula Wed 17-Sep-08 12:53:11

Following a thread today about this

Have you for eg been offered a mortgage of 5 times your joint salaries
or 10 times single?
or basically anything above the bog standard 3 time boths (as used to be the case)

Did you take it up?

Did the bank/broker or whoever advise you of what your repayments would be if interest rates went up?

ChacunaSonGout Wed 17-Sep-08 12:54:36

we were - 4 years ago the mortgage advisors words were '5,6,7 times - whatever you need really'

sadly we took her up on it

CountessDracula Wed 17-Sep-08 12:55:18

this is thread

Chacun why sadly?
What difficulties are you experiencing?

ChacunaSonGout Wed 17-Sep-08 12:56:28

no - we are ok ( ish) but nervously watching rates as our fix is up in april and our mortgage is huge

MuffinMclay Wed 17-Sep-08 12:58:31

Yes, been offered 6 times dh's salary at the time (2005). We didn't take it up (went for 2.5 times instead).

Don't think we'd get the same offer today.

CountessDracula Wed 17-Sep-08 12:58:32

And can you afford to re-mortgage given they are no longer offering the income multiples? I mean have your salaries increased to cover it?

Or will you be stuck on SVR?

titchy Wed 17-Sep-08 12:58:50

We got a 5 times joint in November with Alliance and Leicester.

CountessDracula Wed 17-Sep-08 12:59:36

So what came first, the mortgage or the house?
I mean did you see a house and say "ooh I want that" or did you go to a broker or bank and ask how much you could borrow?

ChacunaSonGout Wed 17-Sep-08 13:00:05

no idea !

I am assuming someone will offer us a fix

CountessDracula Wed 17-Sep-08 13:00:08

How can you afford the repayments on 5 x joint???

titchy Wed 17-Sep-08 13:00:55

Ours is fixed for another 2 and a bit years so by then both our salaries shoud have gone up a fair bit, not that we'll have paid much off the capital(25 year term) but we should be able to remortgage with a 4 times salary loan, or maybe even less.

ChacunaSonGout Wed 17-Sep-08 13:00:58

we knew they would lend us a lot and went looking for a house in that price range - bought at wrong time but still glad we did

CountessDracula Wed 17-Sep-08 13:01:29

Well they won't chacun, they are only offering sensible income multiples now!

Look at the thread I linked to
Connies situation is same as yours
They can't get a fix because no-one will offer them the multiple of income they need and their salaries have not increased to cover the diff

titchy Wed 17-Sep-08 13:02:48

How?! Errr large overdraft grin In reality we have about £1000 a month left over once mortgage and bills have been paid so reasonably OK, or woild be if we were careful, which we're not blush

CountessDracula Wed 17-Sep-08 13:03:25

are you interest only?
I guess you must be

zippitippitoes Wed 17-Sep-08 13:04:39

i have a self certified mortgage of 100k

interest only with abbey

it was based on a "projected" income with the help of an accountant and a broker (charcol)

it is oner of those flexible ones

over 15 years

and i sued oit to build a house in the back yard

i ahvent avtually earned anything since i took it out

i dont have any savings

and i dont have any income currently

or any pension

and i am single

i do have anothe interest free debt of 30k

CountessDracula Wed 17-Sep-08 13:05:29

So how do you pay it?
Do you rent out hte new house?

titchy Wed 17-Sep-08 13:05:58

Ours CD? No we're on a repayment. About £2k a month. Bills are £500 a month. I earn £10k a year, dh £50k a year. Mortgage is £300k.

Gobbledigook Wed 17-Sep-08 13:06:36

I can't remember what ours was now but I think it was around 4 times or 4.something - it was more than the usually 3 or 3.5 though.

Yes we took it up and yes we were told what repayments would be once fixed rate ended - and when fixed rate ended we switched mortgages because it was astronomical (this was early this year).

Oliveoil Wed 17-Sep-08 13:08:56

we were offered 4 x

did it x 3, on dh's salary alone as I was temping and 'didn't count' at the time

zippitippitoes Wed 17-Sep-08 13:09:10

my dd1 has moved into the other house at below market rate but just above the mortgage

before that i was paying it out of borrowed money

the 30k is supposed to have been used to finish that hoiuse and do repirs to mine and gardens of both which are just building sites

but as i dont have a job i actually have been living off the borrowed money

the plasn was to sell and pay back but im not selling in this market because i would have to sell the house i live in and redeem the mortgage and clearly i wouldnt get another

MrsTittleMouse Wed 17-Sep-08 13:10:54

We were offered 4.5 times DH's salary last year, but there was no way that we would take it. I'm a SAHM, so no salary from me, but even when I go back to work we won't have loads more cash as we will have childcare costs.
The mortgages that we were offered were fixed rate with quite good interest rates (we have a large deposit), but we were given a clear leaflet explaining that interest rates could go up after the fixed term and explaining what the monthly payment would be if we went onto the "standard rate" for the lender (which was about 7.6% at the time).
We still haven't bought a house, we haven't found anything that we love at the price yet.

Soapbox Wed 17-Sep-08 13:14:24

We've been offered up to 4.5 joint, but have a very high joint income, such that the remaining disposable income after capital repayments would still have been high.

Also, we had a huge slug of equity at that time.

However, we've never actually had a mortgage that is more than 1 times joint income. We've always worked on the basis that if one of us was severely hacked off or felt professionally compromised at work, we could give up for a while and still live comfortably.

zippitippitoes Wed 17-Sep-08 13:14:37

i dont clasim benefits..i doubt id be eligible for any as i havent paid national insuarnce contributions

zippitippitoes Wed 17-Sep-08 13:17:04

my exp didnt earn enough to pay tax either so i am used to being in this position

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