Mortgages : What banks are offering more than the 3.5 salary multiplier?

Jeaniemc1

Hey all,

Does anyone know what banks are offering more than the 3.5 salary multiplier for a mortgage?

Cheers,

Jean

KevinCavan

Jeaniemc1 wrote: »

Hey all,

Does anyone know what banks are offering more than the 3.5 salary multiplier for a mortgage?

Cheers,

Jean

I’m no expert but from what I read any bank in January/ February of any given year.;-)

catrionanic

It depends on whether you meet the criteria. Generally to be considered for an exemption on your income, they will consider joint applicants with combined salaries of over 100k. They would also expect you to have a good deposit. They won't give exemptions on both income and deposit.

We were offered an exemption from Ulster bank about a month ago.

myshirt

catrionanic wrote: »

It depends on whether you meet the criteria. Generally to be considered for an exemption on your income, they will consider joint applicants with combined salaries of over 100k. They would also expect you to have a good deposit. They won't give exemptions on both income and deposit.

We were offered an exemption from Ulster bank about a month ago.

But did Ulster Bank give you their best rate? Just via talks by the water cooler I've been told their lowest rates apply only on loans up to 3.5 times income. For me if I was young and getting a mortgage that'd be useless as I'd rather borrow 3.5 on 2.3% than 4.0 on their standard variable 4.25%.

Be interested to hear your experience.

Op, +1 on previous posters. It's a combination of things that will get you an exemption, but consider if you actually want one. The lending limits may protect you against yourself and you'll be thanking them in a few years. Anyway, ballpark you're talking the 100k mark, a 15-20% deposit, good credit history, in a profession with upward trajectory, in the job 2 years, have a qualification, buying in an area where bank can sell if they've to repossess, can show you'd have 3k left after a stressed mortgage payment (current rates +2%), and two of you working. Other things that would help are preferably no kids, but it's not a show stopper if you have the income.

Note also that average borrowings or offers to new customers are very often less than the 3.5 times income. Not everyone gets the 3.5, but if people get themselves into good financial shape in advance of an application there's no reason why they won't get it, unless the bank is stupid.

catrionanic

Yes all the usual rates were available to us. Lowest rate 2.3% 2 year fixed.

We've ending up not using the exemption in the end, and had the same rates options.

myshirt

catrionanic wrote: »

Yes all the usual rates were available to us. Lowest rate 2.3% 2 year fixed.

We've ending up not using the exemption in the end, and had the same rates options.

That's actually very good. Wow.

NIMAN

Jeaniemc1 wrote: »

Hey all,

Does anyone know what banks are offering more than the 3.5 salary multiplier for a mortgage?

Cheers,

Jean

Hopefully none, that's what got us into such a mess previously.

I would agree that maybe there is scope to move the 3.5x multiplier a bit given our house prices, but not too much.