Mortgage Multiple

[Rensh 10]

Hi, not sure if this is more of a rant but does anyone know about a way to get around the mortgage salary multiple? We currently own a home and want to move. We have had debt issues in the past but are in a good place now. We have enough equity for a deposit on a new place, some to clear last debts and then to clear the existing mortgage. In total across the current mortgage and debts, we pay out around £1,670 per month. I've looked at a new mortgage for a home at £300k and the monthly mortgage would be around £1,050. I've spoken to the bank and they aren't willing to lend more than £200k.

 

On 300k, I'll still be over £600 per month better off, surely they can see that makes sense and approve? Why should we be restricted to what we can buy when we have a deposit and the income to get something nicer? 

 

If anyone has any suggestions, I'd greatly appreciate them. Failing any other option, we are going to have to stay put, clear the debts and then look again but we will still be restricted to the 200k limit so unless I can find £100k, we're stuck here for the foreseeable. 

 

Thanks all. 

[crookesey 635]

10 hours ago, Rensh said:

Hi, not sure if this is more of a rant but does anyone know about a way to get around the mortgage salary multiple? We currently own a home and want to move. We have had debt issues in the past but are in a good place now. We have enough equity for a deposit on a new place, some to clear last debts and then to clear the existing mortgage. In total across the current mortgage and debts, we pay out around £1,670 per month. I've looked at a new mortgage for a home at £300k and the monthly mortgage would be around £1,050. I've spoken to the bank and they aren't willing to lend more than £200k.

 

On 300k, I'll still be over £600 per month better off, surely they can see that makes sense and approve? Why should we be restricted to what we can buy when we have a deposit and the income to get something nicer? 

 

If anyone has any suggestions, I'd greatly appreciate them. Failing any other option, we are going to have to stay put, clear the debts and then look again but we will still be restricted to the 200k limit so unless I can find £100k, we're stuck here for the foreseeable. 

 

Thanks all. 

I used to do this for a job, all be it a long time ago. You see yourselves as being ‘in a good place now’, however any prospective lender will have to have knowledge on the places that you have visited in the past, they will concern themselves of you having the odd trip back. My advice back in my time in the job would have been not to borrow the absolute maximum available, after all any prospective lender will have the the reassurance that your healthy deposit will cover them if the worst case scenario were to happen.

 

Also the price of borrowed money in the future is unknown, I wouldn’t like to bet my future on the price of the Ukraine conflict, I note that Finland is now concerned about a possible invasion.

 

I wish you well in your future dealings.

[Jeffrey Shaw 90]

On 21/04/2022 at 22:05, Rensh said:

Hi, not sure if this is more of a rant but does anyone know about a way to get around the mortgage salary multiple? We currently own a home and want to move. We have had debt issues in the past but are in a good place now.

 

Best to use a 'whole of market' mortgage broker

or a reputable financial website (e.g. Martin Lewis, Moneyfacts, Compare the market, etc.)