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.

[CountessDracula]

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?

when i got the mortgage iwas optimistic anout the business, i thought exp would get a better job and i thought i would make money from houses

none of these actually happened

but i still think better to try and fail then never try at all

No that should make a difference to the LTV NOT the income multiplier
Regardless of how much equity you have, there is still only a finite amount you can pay!

well we were offered 6x joint salary on 100% mortgage

we took 4.5 times with a 15% deposit

we are unable to remortgage (fixed rate ran out)because the multiples dont add up now the lenders have changed their affordability criteria and the % of equity you need to get these fixed rates

therefore we now have an interest only mortgage on a SVR (about 7.8% iirc)when a fixed rate repayment would be cheaper (but we dont meet the criteria for that)

i think many people will be in a similar situation to us as foxed rate deals end

my broker said he has nearly 75% of people with fixed deals coming to an end unable to remortgage

i cant remember what my house was valued at when i took out the mortgage something like 340k so plenty of equity

no idea what it is wporth now or the other house

maybe 300k..tho that could be optimistic and 150k for the other

at peak would have been about 420k for this one and 220k for the other

i was just too slow getting them to market

Ditto soapbox (although not the 'very high' income bit!) - we had a lot left over after mortgage payment and we had a lot of equity so were only borrowing just over 50% of house value.

I asked this a few weeks back as dp thought we were living dangerously on 2.5x his income!!!! And we have 1/3equity having just remortgaged to 2.5 to fund new much needed kitchen.
I took 3.75 x my part time job income as single parent in 1998 was still £100 less per month what I was forking out on rent
Luckily rising prices kept me safe had market gone pop then I'd have been in pooh

CD - I'm sure our financial advisor said that the LTV was factored in (although it was a few years ago so I may be wrong).

We remortgaged earlier this year when our fixed rate ran out but we were lucky that our income had increased so that we didn't need such a big income multiplier to borrow what we needed.

connie - what do people do if they can't remortgage? Do they just have to swallow the new higher rate?

Yes there is no option really
You have to stick with your existing lender on their SVR

Which at 7.9% or whatever is going to do you in if you don't have much room for maneouvre.

for eg on a £100k mortgage over 25 years repaymetn
Your fix would be about 5.5% atm
so £620 a month

and £773 @ 5.9

yes

we are stuck on the SVR - couldnt afford repayment on that so we dropped it to interest only which essentially means we cant afford the house

house on market but we have to sell before prices drop to level we bought it at - we may take a loss on the deposit but if it goes lower we'll be in negative equity with interest only mortgage......not good

Also bear in mind that the higher interest rates get the less benefit you get from switching to interest only

have been offered 5 x joint or single (mine)
no, didn't do it, realised would be madness

we were offered somewhere between 4 and 5 x joint.

repayments would have been crippling.

Well it was less risk
Now (a) your equity will go in all probablity and (b)they wouldn't be able to sell the house anyway if they reposessed it!

I think that is it basically gdg. If no-one will give you a fixed rate you are stuck on the standard variable which is what most fixed rates revert to at the end of their term.

When we bought this house we were on something like 2.25 x joint I think with the proviso (to us not the lender) that I was just pregnant which led to a reduction in income as I went part time.

Our FR is up next year. As we are now at about 60% equity (but falling obviously) and only need a mortgage of 1.5 x joint income I assume we will manage to get another.

Zippi, do you live in Ireland? That's a pretty steep price drop if you're in the UK.

When I first started thinking about moving back to Dublin a couple of years ago my db was telling me that there were some shocking mortgage selling practices there. Such as estimating the income from renting out a room and including that as salary, then offering up to 10 times salary.

Yes bozza I think you will

We are just over 1x joint atm
But our salaries have gone up since we bought the house. I can't remember what it was when we did but last time we re-mortgaged it was based on dh's salary only (and he earns less than me atm)

oh and most lenders no longer accept commission, bonuses etc as income either... even if its guarenteed and provable

no i live in the midlands

i am talking about two houses

a vcitorian terrace and a new build swishy one lol

unless i do sell it is hard to say

but i would do much better if i got the work done

my fall back is lodgers/students

of course on the bright side for me my income can olny go up lol

Well when I did the figures for us on 5x joint I nearly fainted!

god housework.........I think you're mad