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Original poster

Mortgage in principle 7.5x my income - worried they've made an error

39 replies

lollypop345 · 17/10/2020 20:47

I've been given a decision in principle for 7.5x my income. My mortgage appt to properly apply is next week, I've been having a google and it seems the max they would ever lend is 5x your income and now I'm in a complete panic they've made a mistake and the mortgage in principle will be revoked!!!

The mortgage will be a ported mortgage, at the same amount which I currently borrow. But since getting my initial mortgage I've had a paycut. I told them my current income when doing the decision in principle and it was all approved.

Could it possibly be anything to do with the fact my credit score is 999 and I have a perfect track record with them for my mortgage payments? Or shall I be prepared to be told I can't have a mortgage for that amount when it comes to my appointment...

OP posts:
Lightupgin · 17/10/2020 20:53

When did you take the mortgage you are porting? There are rules in certain circumstances which mean lenders can go outside of criteria if a current mortgage makes you a ‘mortgage prisoner’ ie stops you moving home. Although I am not sure any decision in principle would pick up the porting, the financial services institution I work for certainly wouldn’t anyway.

Original poster
lollypop345 · 17/10/2020 20:58

@Lightupgin Sept 2018. I am due a payrise but not had confirmed date but will be either end of this month or next month - if it does get rejected would they accept that? It's so damn confusing!

OP posts:
JacobReesMogadishu · 17/10/2020 21:00

Do you need a mortgage 7.5x your income? If not, can’t you just not take the full amount?

BrieAndChilli · 17/10/2020 21:02

Is the mortgage you need to take 7.5 x your income?

Original poster
lollypop345 · 17/10/2020 21:04

Yes to port my current mortgage and avoid the early repayment charge I need to have a mortgage at 7.5x my income.

OP posts:
LeroyJenkinssss · 17/10/2020 21:06

Oof that’s a fair old amount! Does it have to be that amount - I mean surely just get a mortgage that is actually reasonable?

In the heady days before the financial crash in the 2000s my DH and I were given a mortgage in principle for nine times our income and we almost bought a house. I bottled it while the seller considered our offer as just had a complete panic attack about the hugeness of it. Phew!

Original poster
lollypop345 · 17/10/2020 21:07

I have enough funds to take a smaller mortgage and pay a higher deposit, just would like to avoid this as I plan to get a buy to let with my savings not put it all into my residential home.

OP posts:
sopopollo · 17/10/2020 21:08

They can't see your actual credit score, which is more of a marketing gimmick for credit agencies. It's only your credit report the lender is interested in. I know certain professionals are able to borrow more (I.e accountants and the sort), but even then 7.5x sounds very high.

LeroyJenkinssss · 17/10/2020 21:08

Sorry just seen your update - maybe it is because of that ‘mortgage prisoner’ thing that a PP mentioned then?

Out of interest does that amount not scare you though? I mean obviously you have been affording the repayments but at base does it not freak you out?

Original poster
lollypop345 · 17/10/2020 21:10

@LeroyJenkinssss the mortgage is £600 a month and I've never struggled with making the payments and am very happy to keep this the same - I also have a very low interest rate, another reason to port my current mortgage.

OP posts:
JacobReesMogadishu · 17/10/2020 21:12

Have you thought about getting a smaller mortgage by doing the bigger deposit for your home. Then getting a BTL mortgage for the BTL property? That way if there is a property crash, or your tenants stop paying you’re not risking your home if you struggle with repayments?

Original poster
lollypop345 · 17/10/2020 21:12

@LeroyJenkinssss my partner also lives with me and pays half the mortgage, but for various reasons I can't add him to the mortgage currently so they can't consider his income alongside mine.

OP posts:
Chapellass · 17/10/2020 21:12

I think it's because you are porting an existing mortgage not borrowing as a new applicant. Maybe ring the lender to check and put your mind at rest?

Original poster
lollypop345 · 17/10/2020 21:13

@Chapellass I will definitely be calling on Monday, just in a state of panic in the meantime 😅😅

OP posts:
delilahbucket · 17/10/2020 21:20

Most lenders allow porting with borrowing the same amount or less, without further checks on your finances. You have proven you can afford it already.

LeroyJenkinssss · 17/10/2020 21:34

Thanks for answering - I’m incredibly anxious when it comes to things like this and am always interested by how people have totally different attitudes to perceived risk. Actually I think it’s very sensible if it’s a partner to not have has his name on it.

Hope it all works out - fingers crossed for you!

JoJoSM2 · 18/10/2020 08:09

7.5x doesn’t sound reasonable or affordable? I think a mistake is likely. You might also want to look into btl- yields, taxes etc. It doesn’t make sense for most people these days.

CiderJolly · 18/10/2020 08:18

It’s probably because you’re porting.

I was approved for a mortgage the beginning of this year that I never would have thought possible. My income was a combination of modest salary, child maintenance and tax credits.

I can’t imagine that they would make a mistake as it’s all automated- as long as the details you provided was accurate.

CiderJolly · 18/10/2020 08:19

And £600 is cheaper than most rent prices!

SeasonFinale · 18/10/2020 08:26

If you are porting and have never had any issues paying the mortgage then they are at no greater risk than if you weren't moving and keeping the same mortgage on the existing property thus the multiplier is a non issue to them.

changeisasgoodas · 18/10/2020 08:51

Most lenders allow porting with borrowing the same amount or less, without further checks on your finances. You have proven you can afford it already.

Oh how that made me laugh..... Yes, that was my experience previously. Not this time, now we're in COVID times.

I've just ported a mortgage with Nat West. Earning more than I was, borrowing less, but my god, a new application would have been easier. Had to have affordability checked, bank statements from last six months, employer references, etc etc. Finally got my mortgage offer, 9 weeks after starting the process.

Oh and I had to have a 25% deposit too, was 5% initially.....

Good luck, hopefully you're not with Nat West. I hate those feckers.

changeisasgoodas · 18/10/2020 08:53

And I have a credit score of 999 and an impeccable payment history with them.

AndWhat · 18/10/2020 09:28

We recently moved and ported our mortgage. Due to a high proportion of credit and pay cuts our affordability dropped significantly, but as we had been overpaying (Only by £20 a month) regularly they offered us up to 50k more than if we were a new customer.
We did reduce our overall mortgage and downsized due to the drop in income.

Original poster
lollypop345 · 18/10/2020 11:00

@changeisasgoodas oh gosh that sounds a complete nightmare! I am with nationwide, hope it all goes smoothly. House moving is so stressful, I definitely won't be doing it again for a long time!

OP posts:
user1487194234 · 18/10/2020 12:17

Nationwide are very slow at pry
Might be quicker when porting

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