Andrew Yes, I totally agree.
Please go back and read my post I said “the basic quick calculation would be amount divided x 3.25 “ and then I said: “the realistic income multiples used in situations like this in my opinion should not exceed 3.25%”
Key words “quick basic “and “situation like this” I can only go on the information given.
The topic of my input was and is to do with fraudulent self cert. The thematic studies of the FSA of the last two years into self cert says just because a product exists, it does not mean it’s right to use it. Affordability should be assessed at point of recommendation and should be on an individual basis according to the applicants needs, wants and circumstances.
Another question would be why have you exampled interest only? On a repayment mortgage the payments would be 978, (53% of income). With an additional 1% rise in interest rates this would mean an additional 95 (58% of income) a month. You can only assess affordability with all the information to hand, for example attitude to risk, method of repayment, future changes in circumstances etc. etc.
Yes, there are lenders that will offer higher multiple, but should they be used – for interest only self cert where the income is questionable or in fact should 5 x income even be used at all !
Sorry, stt back to you, Soulgrowth has given you some brilliant advice and hopefully you are now considering seeking IP advice.
If you need to discuss your mortgage requirements please discuss it fully with an authorised mortgage broker, you really need to get a second opinion, but as previously stated I wouldn't worry too much about remortgaging at the moment - concentrate on getting that advice.
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