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Original poster

what income multiplier did you take out on your mortgage?

36 replies

Piffle · 05/08/2008 18:31

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?

OP posts:
zippitippitoes · 05/08/2008 18:32

well mine is 4 x my fictitious income

Gobbledigook · 05/08/2008 18:34

3X is about average isn't it?

I think ours was about 3.5X when we first took it out (it's a lot less now because our income has gone up).

pooka · 05/08/2008 18:34

OUrs in 2000 was 3 times our joint salary.

FeelingLucky · 05/08/2008 18:36

2.5 x joint income
Our mortgage advisor said this was a low multiple when we remortgaged and asked if we wanted a bigger mortage as he could get us one.
~We said NO

Gobbledigook · 05/08/2008 18:36

I think not so long back it was fairly easy for 'professionals' to get 4 and 5 times their salary, if not 6.

In fact based on our income and credit rating at the time we took out our current mortgage they were prepared to give us much more than 3.5 times. Scary really.

bythepowerofgreyskull · 05/08/2008 18:36

when I took out mine the financial advisor I talked to did 3x salary MINUS Debts.

LadyMuck · 05/08/2008 18:36

3 x dh's salary. Didn't bother including mine (which is the same as dh's) as his covered it, and I had maternity leave etc.

FuriousGeorge · 05/08/2008 21:14

3 x dh's salary.3 x my wages would possibly buy a garden shed.Didn't include my income at all as I'd just had dd2.

sarah293 · 05/08/2008 21:16

This reply has been deleted

Message withdrawn

PavlovtheCat · 05/08/2008 21:18

4.4 of my own personal salary, DH salary was too random to include and we thought it better to do it one that we could afford than on two that we might struggle with. Good job seeing I became pg immediately after moving into new home and stopped work for a while!

oi · 05/08/2008 21:20

at the time (we took it out, 2003), it was just on 3 times one salary (gross).

They were willing to lend us 5 times one salary or 2.5/3 times both, neither sum we would have managed to repay.

Quattrocento · 05/08/2008 21:20

We took out a mortgage in 1998 which we have since paid off of 1x joint income. We are quite risk averse though.

MuffinMclay · 05/08/2008 21:38

3 times dh's salary at the time we took it out (2006). Its a lot less now because dh's income has more than doubled.

Original poster
Piffle · 06/08/2008 08:23

hmm interesting...
We don't take into account my income at all into oUr mortgage am sahm but have various things coming in from this and that
We remortgaged with a view to overpaying by 1/5 each month ie: if mortgage £1000 we'd pay £1200
We aim to reduce by more each year if poss
Just did huge review of finances and bloody glad we did as underborrowing was cheating us tbh
bizarre world though!

OP posts:
lucykate · 06/08/2008 08:31

ours is more, much more. about 4.5 dh's salary, but, in addition to this, we both draw in other income from self employed work, which is what keeps us afloat. mortgage payments are 50% of dh's monthly salary, the rest goes on food. all bills, luxuries and other stuff comes out of our self employed money.

is a big house, 5 bed, we took a risk to buy it, but are planning on staying till dc's are grown up. it's a repayment mortgage, if things get tighter, we can always switch to interest only for a couple of years and reduce the monthly cost.

Lemontart · 06/08/2008 08:40

Depends on your life style and needs. Some people can take the risk of stretching it with the multiplier if they are fairly certain that they will move on and upwards in their career route or other partner will be returning back after career break. Huge gamble.
We are going to be moving out of a very comfortable small mortgage to a whopper in the near future. It is a scary proposition and working out how much we can risk borrowing is made so much harder when I know we can find a loan for larger than is sensible. Added on the constant temptation of the house hunting thing where there is always a home more amazing and "perfect" if you stretch the top budget by XXX.. Easy to see how people make bad decisions and end up in financial trouble.

TotalChaos · 06/08/2008 08:45

about 3.5 times DH's salary.

Sonnet · 06/08/2008 08:48

Piffle - what do you mean "Underborrowing was cheating us?"
I ask because we are in asimilar position to you?

lucykate · 06/08/2008 08:49

lemontart, we made the jump from a small mortgage to a whopper, i was petrified at the thought!, tbh though, financially, it hasn't been as bad as i expected, we've had the odd tight month, but have so far managed to work around it and cut out cloth accordingly.

ThePettyandIllinformedGoat · 06/08/2008 08:49

3 times our joint salary. was scarily more than that 3 years ago but we stretched ourselves in the knowledge that our salaries would increase. was v. tough for first 2 years. we don't have any other debt.

titchy · 06/08/2008 09:44

5 times - about 6 months ago. I'd say 3 x was lowish - 3.5 about average.

LIZS · 06/08/2008 09:51

3ish of dh's beg 2007, I wasn't working at the time

LackaDAISYcal · 06/08/2008 09:59

It was three times our joint salary when we took it out in 2005, but since I've been on maternity leave/unwaged/sick leave/maternity leave again since April last year, it's almost five times DHs salary alone . My monthly wage isn't worth toffee at the minute.

We are scared shitwitless about the way the economy is heading.

flowerybeanbag · 06/08/2008 10:02

I think ours is about 3x DH's salary, maybe slightly more. We've had a higher proportion previously though. Always better for us to do 3.5 or 4x DH's salary than 2.5 or 3 x joint.

Quattrocento · 06/08/2008 10:04

By "better" do you mean that you can borrow more? Because that definition of "better" would actually make me feel worse.

Am also interested in Piffle saying that underborrowing was cheating them. Cheating how?

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