Mortgages - Who offers the most multiple of your wages?

bobbysands81 · 17-10-2007 2:02pm #1

Of all the companies out there does anyone know who offers prospective buyers the absolute maximum? (regardless of their rates)

seamus · 17-10-2007 2:15pm

It's not really that simple. There are rough figures that are used as multiples of a person's salary, but two people on identical salaries won't necessarily get the same amounts/rates.

For example, one guy on €40k who's had multiple loans but paid than all off, may get offered 280k.

Another guy on 40k but with 15k in loans, may get offered 220k.

Another guy on 40k who's had a few loans and overrun credit cards and missed a few payments and even had a credit card cancelled once, may only receive 180k.

Roughly speaking, the companies that are "looser" with their credit will have higher rates. I'm sure some people here will know their names.

bobbysands81 · 17-10-2007 4:16pm

Cheers Seamus, would love it if anyone else could help with a bit more info...

unclebill98 · 17-10-2007 4:51pm

Afraid Seamus is correct. There is no Bank that does 4x your wage and 3x you partners wage.

Its all about capacity to repay. Simple.

Go into bank tell him what you earn and they'll tell you what you can get. Most banks under writers want to see you with about 40-45% of your wage left after all outgoings. If its a joint mortgage that will be assessed on both people.

So if you earn 2k, and have no loans then you'll roughly get a mortgage of around 800-900p/m. That will be about 180k over 40yrs. Thats not taking into account life/house cover. And those figures are off the top of my head so please don't quote me.

Plus you'll get stress tested by adding 2% to the interest rate to make sure you can cope with the mortgage should interest rates go up.

But then every bank is differant. One bank gave us a max of 320k and another a max of 370k. They'll access you as a risk. So it all boils back to capacity to repay!

full circle there.

stepbar · 17-10-2007 5:24pm

Just to reiterate what the lads said, its all about capacity to repay. A rough guide would be 4.5 times your income or 5 times if its a joint application. However, it has been know for some banks in the past to use multiples of 7.

TBH you need to go to a number of banks and they should give you an "Approval in Principle" meaning that you can go ahead and look for houses up to your limit.

bobbysands81 · 22-10-2007 9:05am

Cheers for the advice lads.

Thinking of trying to get a mortgage for 100k more than what I currently have. I haven't missed a payment with my current provider in the 2 and a half years I've had a mortgage with them and I would be able to get a guarantor to try to cement the deal, just wondering whether or not a bank would be likely to give me what I'm looking for.

bobbysands81 · 24-11-2007 1:59am

Stepbar, any idea what bank that was???

stepbar · 24-11-2007 1:31pm

The ones that lend to Michael Lynn!!!!

Seriously the likes of Bank of Scotland Ireland, PTSB, Irish Nationwide have been known in the past to lend on this basis (i.e on a multiple of 6 - 7). Who knows they might be desperate enough to do it seeing that mortgages applications are drying up. Bank of Ireland certainly wouldn't go that high unless they were 110% certain that you would be able to repay the loan without having to survive on a pasta diet for the next 20 odd years. Having a guarentor may help but at the end of the day it all depends on your capacity to repay.

Mortgages - Who offers the most multiple of your wages?

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