mortgages

[emailer]

how many times your salary is your mortgage?

[twiglet4frog]

about 6 or 7 yeatrs ago a bank advisor said that it was 2 and a half times to 3 and half times ur yearly salary depending on circumstance, but times change

[Octavius]

Are you speaking about me?  Classified information I'm afraid. 

 

The amount the banks or building societies offer will depend on the market for mortgages at a particular time, and if they are trying to attract new customers some banks have been known to offer up to 5 or 6 times your salary.  About 3 times is average though, as anything above this will leave you financially crippled.  

[kalise25]

It used to be 2 and a half to 3 times your salary (or for a couple, 3 times the higher earner and once the lower) but as Octavius said, it has now changed. I was offered five times my salary 18 months ago - there is no way I couls afford to eat if I had to repay that!

2 to 3 times your salary is a good guide in that it's generally (!) an acheivable monthly payout. Don't forget that you have to factor in your insurance and the evil council tax as well....... Good luck!

[Horny_Minx]

Due to the change in the housing market over the past year, the way in which mortgages are offered have changed dramatically. If the mortgage is to be in sole name then the income multipliers will be calculated at a higher rate than a mortgage with two or more applicants. Most Banks and Brokers now calculate the amount you can borrow on the amount you can spare each month (obviously without going beyond your means). I hope this helps, but the best thing to do will be to shop around (Banks & Mortgage Brokers), as this is something that is likely to keep changing with the current situation. Ex-Lloyds TSB Employee

[emailer]

I was actually asking for personal experience, not what it is possible to get.

any other answers?

[red thumb]

Maybe we should upgrade. We bought our house 7 years ago & owe 1.4 times our combined salaries. This includes an extra refinanced amount for improvements when we renewed this spring. It also includes interest over the next 14 years by which time we expect to pay it off.

[WoWo]

redthum - your better over paying on your current mortgage if you can afford to. Because mortgages are paid over such a long time you pay a hugh amount of interest therefore over paying just a little more can reduce your payment period considerably. Anyway back to the question, I don't have a mortgage anymore, I sold my house and decided to rent. But when I did have a house it was 3.75 of my own salary but only 2 when joint with my wife.