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hippy-
I get a great return on my savings and start buying mortgage repo properties...
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What happens after 10 years when interest rates are 14%?
We'll be overpaying by a tidy amount, so the loan should be relatively small (~50-60%) by then if all goes to plan. I'm under no illusions about the current interest rate being lower than a low thing.
Brommers
rhowe
People definitely lend more than 4x salary. If your outgoings are low (they don't generally consider shopping, booze, hookers etc in this calculation - it's more loan payments, child support, etc.) then someone like Woolwich may go as high as 6x!
For what it's worth, joint income of 70k plus a few k discretionary annual bonus and Yorkshire BS said they'd lend £340k. We have a 25% deposit and were asking for £307k so the application's now progressing.
5 year fixed at 3.45% over 30 years means for 5 years we'd be paying just over £1300 per month. £250 more than we're paying for a 2 bed flat in pretty much the same area (the place we're buying is a 3 bed end of terrace).