Mortgage Multiples - how big a risk would this be?

[crumpet]

Dh and I earn about the same. We're thinking about trading up, but for the house we'd be interested in, it would mean a mortgage of 3x joint salary (or 6x single).

I'm torn between wanting this house, and worry about the financial committment. WWYD? I'd be really interested in opinions.

Is the annexe something that you could rent out if times got tough?

we're looking at a 5 yr fix of 5.6%, which whilst not attractive now may be good in 2-3 years.

also looking at a similar income to mortgage ratio; we both have income protecion. i would definately take it out in the current market.

when did you last look at mortgages? we looked in november, went to take one out in january, which had gone, deposit required much higher, and they've changed over this year too.

The Guardian is helpful for showing mortgage products - although this table doesn't show the LTV, which I think the Saturday Money Guardian also includes - but most are fine if you have a 20% deposit. There are some reasonable fixed deals for around 5%

I would think the annex would need planning consent to rent out - no idea yet how easy that would be.

I would not be surprised if interest rates take a huge hike at some point - but when is of course the big question.

Is that all they will lend at the moment 3 x joint salary. That is ridiculous. Rent round my way is more like 5 or 6 times joint salary and with interest rates being so low it's a joke. 3x salary should be fine.;