The Mudcat Café TM
Thread #157045   Message #3705698
Posted By: GUEST,Allan Conn
01-May-15 - 09:15 AM
Thread Name: BS: election uk
Subject: RE: BS: election uk
The poster posting as Guest is perfectly correct. How much you can borrow depends not just on the Loan To Value; but on your income and how the income is made up. If your income is made up of bonuses or overtime and not just basic salary then that can reduce your capacity to borrow. Not just current credit arrangements but student loans coming off your wages reduces the capacity to borrow. One person buying on a salary of £25K may be able to borrow less than 2 people with a combined £25K salary with some lenders. Also contract type is important. Many people are not on permanent contracts nowadays and it can be hard to get a mortgage at all under those circumstances. There would seem to be no reason to doubt someone when they say their son could only borrow a certain amount! Theoretically you can borrow up to 95% with many lenders but at that level the credit scoring needs to be very good. Not talking about bad credit just there needs to be a history of credit, not changed house too much, be on the electoral roll etc. If youngsters are living in areas with high prices it must be horrendous. Problem is live further away from the work place to reduce the house and lenders are now taking commuting costs into the affordability factor too. You can't compare getting a mortgage today with even five years ago,