Category: income multiples

Mortgage prisoner? There’s light at the end of the tunnel…for some.

Around 140,000 people with mortgages are currently classed as ‘mortgage prisoners’.  This means that they could be with a lender who is no longer active, or a lender who has ‘bought’ a number of clients from other lenders but who does not offer additional mortgage products once the customers current incentive rate period comes to […]

Looking at purchasing your first property?

Looking at purchasing your first property?  Then this week’s column should be of interest as there’s a number of ways to help you get on to the property ladder that may not be widely known. First Time Buyers will usually require a minimum 5% deposit, but product availability increases with a 10%+ deposit.  Some lenders […]

Income multiples and affordability calculators.

Gone are the days when a lender used to simply calculate the mortgage loan available by multiplying your income by 4 or 5 times.  Today it’s so much more intense!  For example, a lender will require to know your monthly budget spend figures, right down to every direct debit on your bank statements, including council […]

Some Lenders reduce income multiples

Quite a few rates have been increased over the last ten days and some further criteria restrictions implemented.   In quite a significant move, Nationwide has limited their overall income multiples to a max of 4.75% times income for all residential loans.  This follows recent guidelines from the Bank of England allowing only 15% of all […]

First Time Buyers will get the ball rolling again…

First time buyer confidence is increasing. We are seeing healthy enquiry levels from first timers either on their own or using a shared ownership scheme. Lenders historically agreed mortgages based on income multiples. Some would lend up to 3.75 x income, some up to 5.1. On joint applications similar style calculations applied. Most lenders now […]