Some mortgage lenders allowing people to borrow 6x salary
When buying a house, normally you can borrow up to 4.5x your salary. However, some mortgage lenders have started allowing people to borrow up to 6x their salary.
There are certain criteria you have to meet to be able to do this.
What are your thoughts?
Mortgage lenders offer six-times salary loans – but is it a good idea?
There are certain criteria you have to meet to be able to do this.
What are your thoughts?
Mortgage lenders offer six-times salary loans – but is it a good idea?
I think it is a bad idea.
I think the usual limit of 4.5x salary is fine.
I think the 6x salary (even though you have to pass certain criteria to be offered it) will just encourage more and more reckless borrowing.
I think the usual limit of 4.5x salary is fine.
I think the 6x salary (even though you have to pass certain criteria to be offered it) will just encourage more and more reckless borrowing.
Anyone have any opinions on this?
Reply 3
20
Original post
by Emma:-)I think it is a bad idea.
I think the usual limit of 4.5x salary is fine.
I think the 6x salary (even though you have to pass certain criteria to be offered it) will just encourage more and more reckless borrowing.
I think the usual limit of 4.5x salary is fine.
I think the 6x salary (even though you have to pass certain criteria to be offered it) will just encourage more and more reckless borrowing.
Why do you think 4.5x is fine but 6x is not?
Would ypu take out a mortgage with a 6x or greater income multiple?
Original post
by QuadyWhy do you think 4.5x is fine but 6x is not?
Would ypu take out a mortgage with a 6x or greater income multiple?
Would ypu take out a mortgage with a 6x or greater income multiple?
4.5x salary has been around for years and for good reason. 6x is just too much in my opinion. I wouldnt go for it.
Reply 5
20
Original post
by Emma:-)4.5x salary has been around for years and for good reason. 6x is just too much in my opinion. I wouldnt go for it.
If you wouldn't go for it then why are you worried it would encourage you into more and more reckless borrowing?
Where do you get the 4.5x figure from?
Original post
by QuadyIf you wouldn't go for it then why are you worried it would encourage you into more and more reckless borrowing?
Where do you get the 4.5x figure from?
Where do you get the 4.5x figure from?
It may cause more and reckless borrowing. I am not worried about it. I am just saying that it is likely to lead to that.
The 4.5x salary thing- thats usually the maximum you can borrow with a lot of lenders.
Reply 7
20
Original post
by Emma:-)It may cause more and reckless borrowing. I am not worried about it. I am just saying that it is likely to lead to that.
The 4.5x salary thing- thats usually the maximum you can borrow with a lot of lenders.
The 4.5x salary thing- thats usually the maximum you can borrow with a lot of lenders.
Natwest - 5.5x
Lloyds Banking Group - 5.5x
Barclays - 6x
Nationwide - 6x
HSBC - 6.5x
errrrrrrr so which lenders is it 4.5x.....?
Original post
by QuadyNatwest - 5.5x
Lloyds Banking Group - 5.5x
Barclays - 6x
Nationwide - 6x
HSBC - 6.5x
errrrrrrr so which lenders is it 4.5x.....?
Lloyds Banking Group - 5.5x
Barclays - 6x
Nationwide - 6x
HSBC - 6.5x
errrrrrrr so which lenders is it 4.5x.....?
I am with Nationwide and have always been told 4.5% by them.
Reply 9
20
Original post
by Emma:-)I am with Nationwide and have always been told 4.5% by them.
Their mortgage calculator says otherwise:
https://www.nationwide.co.uk/mortgages/mortgage-calculators/borrowing-calculator/
Stick in £1,000,000 purchase price, £400k deposit, 1 borrower on £100k income over a 25 year term.
(edited 1 month ago)
Original post
by QuadyTheir mortgage calculator says otherwise:
https://www.nationwide.co.uk/mortgages/mortgage-calculators/borrowing-calculator/
Stick in £1,000,000 purchase price, £400k deposit, 1 borrower on £100k income over a 25 year term.
https://www.nationwide.co.uk/mortgages/mortgage-calculators/borrowing-calculator/
Stick in £1,000,000 purchase price, £400k deposit, 1 borrower on £100k income over a 25 year term.
It must have more recently changed then.
Quick Reply
Related discussions
- Opinions on 100% mortgages
- Primary teaching?!
- How to survive as a mature student
- Substantial savings - is maintenance loans needed?
- Career Decision Help needed! NHS vs. KPMG
- Architecture Career: One Year Lost or a Lifetime Gained?
- SAAS appealing for income
- Radiotherapy and oncology degree
- Car finance
- Is there a future of Computer Science in the UK
- Public school
- Phd stipend and universal credit
- PGDL vs MA at BPP
- investing
- Mistakes were made
- Do I need to tell the SRA about my debts as trainee solicitor?
- Childcare or extra funding if DP is a high earner
- Cash ISA limit to be cut to £12,000 a year
- Mortgage as a mature student
- Loan for international student at City St Georges
Latest
Trending
Last reply 9 months ago
What would be a fair way to split bills when siblings live together?Last reply 9 months ago
I want to raise £1,500 urgently. Any suggestions on how to do so?Last reply 9 months ago
signed up for 2 utilities packages for second year house
How The Student Room is moderated
To keep The Student Room safe for everyone, we moderate posts that are added to the site.
