Mortgage multiplier

[wales01man]

Asking for my son who will soon be trying for a Mortgage.What multiplier of income do the companies use these days.TIA if anyone can help

[Amethyst]

Ummm I don't think they do that now, go to something like the Lloyds calculator -https://www.lloydsbank.com/mortgages...calcintnewhome

if you put income of £28k it says you might get a mortgage up to £133k so that's 4.75 times. But once you add outgoings etc it changes. It's much more focussed on affordability and credit rating than the standard 2.5 tines multiplier it used to be xxx

Try a few different high street lender calcs to get a better idea - and put in the outgoings ( best to over estimate than under ) as they will be used in the calculations by the banks ( if income £28k and outgoings of £350 month it brings it down to £107k for example )

[wales01man]

Thanks AME he thinks he can get 280 on just over 40k income I think as usual hes dreaming

[Amethyst]

Possibly - is he buying on his own or with a partner ? On the Lloyds calc income of £40k and no outgoings says lending of £190 - so bit of a leap to get to £280k

If he's buying with someone and they have income of say £28k ( and no outgoings ) that bumps it to £323k - really he needs to sit and do some of the calculators and ( because I'm a stresshead ) check it would still be affordable if the rate goes up to 7% and he's reliant on only his income.

The banks are pretty hot on affordability now but even so it's never a good idea to mortgage to the max possible because shit happens ( as Im pretty sure you're well aware and have told him and he'll ignore you lol )

What sort of deposit has he got saved ?

[wales01man]

I don't know what deposit think max 5% its a mortgage on his own

[Amethyst]

Don't think he has much chance of £280k then - not for a sensible mortgage ( by which I mean under 5% and not more than 25 yrs ) Same figures ( just £40k income and no outgoings or dependents) on Santander give £178k with a £5k deposit

[wales01man]

Thought so myself he does dream a bit