morgage

[jellyhead]

what companys will give 5 times your salary when calculating the amount you can borrow

[WoWo]

Declaring false information on a self cert mortgage is fraud and therefore if you get found out you would go to prison. Also the mortgage laws are about to change which will make the mortgage company partly responsible, therefore self cert will be more closely looked at.

[Oneeyedvic]

The usual would be around 3 - 3.75 times. There are some companies who LOOK loke they will lend more but it is not as easy as you think. You have to be able to prove that your income will change dramatically - eg a solicitor who is about to qualify maybe only on �15,000 per year. A broker maybe able to place him with a provider who will lend him �122,000 as he should be on a salary of �35,000 within the next 2 years. In normal circumstances, lending 5 times current salary would be irresponsible for any lender. *that is not to say that irresponsible lending does not happen.

[spezza123]

Ok I needed over 5 times my salary. I got mine from HSBC and its based on affordability rather than income multiples. Your mortgage repayment and bills such as council tax and credit card debts must not be more than 60% of your monthly net income. Go in to your local branch and speak to them. Over the phone you won't get it. Good luck. I don't think this is irresponsible of the lender to offer this much by the way. As long as you can keep up with repayments whats the problem! Property prices in London are a bit silly at the mo and income multiples just don't work for some situations.

[Oneeyedvic]

I agree that if you can afford the repayments it is not irresponsible SO LONG AS they only offer you this at a fixed rate mortgage. Otherwise if the interest rates were to go up, there would be no affordability.If you were to earn �30,000 a year and wanted to borrow �150,000 your repaymetns would be �876.00 based on a 5% interest rate. If the rate were to go up to 6.5% the repayments would be �1024. If rates were to go up to 7.25 % (and this is the average rate over the last 10 years) payments would be �1096 - �220 more than you first signed up to. Based on the assumption that your take home pay on �30k should be around �2,000 per month,your mortgage has just gone up by 10% of your slary!