150k deposit!!
Discussion
ClassicCarless said:
I was under the impression that 4x salary was the upper limit.
I have been mislead? That's good news
I think part of it ( quite sensiblly ) is affordability. If you are taking home £1500 a month, then food, bills, transport etc will leave you with perhaps £600 a month to cover a mortgage. If you are taking home double that amount your're capacity to pay doesn't double it becomes more like £2100 a month. So 5 times income for higher incomes makes sense, don't assume though that on £25k a year you'll get 5 times income!I have been mislead? That's good news
OdramaSwimLaden said:
Sister and husband have £150k deposit (on bank), he makes £55k as a buyer (in same job for 6 years), excellent credit history.
Taking on board the above they are struggling to find anyone to help them buy a £400k house.
Anyone got any pointers? Banks, brokers or??
I'm in the process of buying a house and Sarnie is doing a great job of organising the mortgage for me. It's not over till the fat lady sings but i have no complaints so far and he has been incredibly helpful answering my stupid questions and working out exactly which product suits my need the best. Taking on board the above they are struggling to find anyone to help them buy a £400k house.
Anyone got any pointers? Banks, brokers or??
ClassicCarless said:
I've just had a play around on the Lloyds mortgage calculator thing and indeed you guys are right.
That's good news
Would being a first time buyer have an impact on the amount they'll lend?
Age, Level of deposit, credit score and FTB status might all influence the underwriter. Salary multiples are a broad-brush calculation but until you go for a Decision/Agreement in Principle the impact of the individual's situation can only be guessed at. That's good news
Would being a first time buyer have an impact on the amount they'll lend?
Those of us who do this every day will be able to have a pretty good guess at it as we get to know each lender's foibles, but until you run the AIP it is still a guess.
Anthony Micallef said:
Whats the limit for a joint income?
The same, 5x income.Please note that only a few lenders offer 5x income. Also, it's availability is directly related to your overall profile eg credit score, LTV, level of income, number of dependants and level of credit commitments etc.
Sarnie said:
Anthony Micallef said:
Whats the limit for a joint income?
The same, 5x income.Please note that only a few lenders offer 5x income. Also, it's availability is directly related to your overall profile eg credit score, LTV, level of income, number of dependants and level of credit commitments etc.
Sarnie, (topic hijack here, sorry) does it make everything much more complicated if my main income is via dividends rather than PAYE's salary?
I'll be looking to buy a house in a year or two, probably with a mortgage, but my wife and I will be taking most of our income out of our Ltd Co in the form of divies as it is much more tax efficient. I'll be paying myself a basic salary of £20kish but our total income will be much higher than that.
I'll be looking to buy a house in a year or two, probably with a mortgage, but my wife and I will be taking most of our income out of our Ltd Co in the form of divies as it is much more tax efficient. I'll be paying myself a basic salary of £20kish but our total income will be much higher than that.
Ossiantoad said:
Sarnie, (topic hijack here, sorry) does it make everything much more complicated if my main income is via dividends rather than PAYE's salary?
I'll be looking to buy a house in a year or two, probably with a mortgage, but my wife and I will be taking most of our income out of our Ltd Co in the form of divies as it is much more tax efficient. I'll be paying myself a basic salary of £20kish but our total income will be much higher than that.
Not really, lenders are cottoning on to how people are setting up their finances these days and most will take your basic salary and dividend combined as primary income. Being self employed though you would be likely restricted to 4x income unless your LTV is low eg sub 60%.I'll be looking to buy a house in a year or two, probably with a mortgage, but my wife and I will be taking most of our income out of our Ltd Co in the form of divies as it is much more tax efficient. I'll be paying myself a basic salary of £20kish but our total income will be much higher than that.
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