have mortgage criteria changed recently?

Hi there

Can anyone who got a mortgage recently let me know how many times salary I can get in my mortgage application. Im a single professional. I also have a rental property. How is this regarded when applying for a mortgage. Since the rental market could be regarded as precarious(not for me personally yet thankfully) , do the banks factor this in negatively when establishing the amount of mortgage you can get

Thanks

Re: has mortgage criteria changed recently?

I was entitled to 5 times my salary when I took out a mortgage recently.

The biggest thing on the bank's mind was that the percentage cash required by me be available. The mortgage doesn't cover stamp duty and you must cover this with your own available finances.

As I don't have rental property I can't help there.

Hi Paddy,

Was there any special circumstances that you had about getting 5 times your salary ?

The impression I had was that banks were making it difficult to get a mortgage.

Thanks.

Got a 92% mortgage on a second-hand home in August last year (FTB); roughly 3.8 times joined salary. I would guess it is more difficult these days than back in August.
However, interest rates are lower now.

tommy78: No special circumstance. Mortgage adviser looked at my P60, salary cert etc and said that I was entitled to 5 x my salary as a mortgage, subject of course to me having the required percentage of my own funds.

I also checked the online calculator, inputted my annual salary and it told me the max I'd be allowed borrow ... again it turned out to be 5 x my salary.

The amount you'll eventually get will depend on purchase price and what type of purchase it is. For example: investment mortgage will require that you have a higher percentage of your own funds than a trade-up mortgage will require.

I only have experience of BOI and I used their online calculator to check out things before I called to the bank.

[broken link removed]

To be honest, I didn't look further than BOI as I have always banked with them and have always been very happy with them down through the years. I may have saved a little over the lifetime of my mortgage by shopping around but the goodwill that exists between me and BOI was enough to keep me as a customer.

BTW .... I didn't come anywhere near 5x my salary in the mortgage I took out. I took out what I felt I could afford and I stuck with it.

Be happy with what you can afford to pay ...... no point getting a 4x/5x your salary if it will cause you hardship every time you make a payment.

Remember, a mortgage is for life (almost) but unlike a dog you can't drop it off at the local sanctuary when the going gets too tough and it grows too big to be able to manage it properly.

Thanks Paddy!

tommy78 said:

Hi Paddy,

Was there any special circumstances that you had about getting 5 times your salary ?

The impression I had was that banks were making it difficult to get a mortgage.

Thanks.

Click to expand...

Thats just scaremongering. Go to the banks and see what they will give you.
You'll find that banks are still willing to lend, unlike what you read on the internet.