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?

it makes me laugh when i look back to my first mortgage, it was 1995, 3 x my salary. i borrowed about 32k, and on a low interest deal, cost me about £180 a month!, when the deal finished and it went on to the base rate, it jumped to a whopping £220 a month!!

no no that isn't the worst case scenario at all!
Those are interest rates now!

What if they hit 13% again? Or worse? And 13% was the base rate - mortgage rates were more like 15% I think on SVR

So
for £150k mortgage that would go from approx £1k a month to £1930 a month!

And if you went interest only it would be £1875 a month so no room for wriggle there

Do you really think it will get that bad again CD?

Mind you, if it does when we get 2 yrs down the line there's not a lot we can do about it now (by 'we' I mean me personally).

Luckily we have an awful lot we can cut back on if we really, really had to.

Blimey - tis frightening though isn't it?

We were offered 5 x joint income when I was pregnant - madness!

Declined that particular offer.

Well no, if you have a 3x mortgage actually you have a chance of NOT being fucked

That is the point I am trying to make!!

our back up is dh's self employed earnings, he's got portraits lined up on a waiting list of 18 months, plus now ds has started pre-school, and goes to school next year, i can start to earn again.

in july, when we had to re-mortgage due to our previous deal finishing, some of the deals on offer actually worked out at more per month than the svr!

I don't have a mortgage , but do know someone who works in the industry. They have been calling clients 5 months ahead of fixed deals ending, because it is taking so long to get other mortgages approved.

I am not saying that this will happen
Personally I think it won't but then I don't have a crystal ball...

I can still remember it so clearly though
And thinking thank fuck I rent

Our first mortgage Back in about 1997 ish) was for 18k - think it was about £110 a month - we had to get my mums exp to act as guarantor for it! Happy days

We bought our current house in March. Mortgage is about 2x our joint salary. We put £75k equity from sale of our last house as deposit.

At the moment we're managing - though definitely noticing higher council tax/insurance as well as mortgage.

kaz33..yep, our mortgage has gone up to £1250 a month..we just fixed it for 10 years with barclays...we took it out nearly 5 years ago, and honestly at that time we could have got whatever we wanted.
i just try not to think about it too much.

cd, i remember when interest rates were that high, i was a student at the time, but had to move out quickly of the house i was renting due to repossession.

That is of course assuming that there are any jobs

IME p/t jobs that fit in with school hours are very hard to find

Well you can't say you aren't going into it with your eyes open...

I had a variable rate mortgage last time the interest rates hit 15%. It was a good thing that lending multiples were only about 3 x salary

Does your dh have a secure type of job?

but shops are very vulnerable to recession

most shop jobs I've seen want people to work at the weekend though - not something I would want to do

yes but everyone else will be looking for second jobs etc plus many places wont be hiring because of the economy

this is starting to happen

look at the banks, the airline

I know of 4 families in last 2 weeks who have had redundancies

my DH's firm have suspended their graduate training programme and all futher vacancies for god knows how long