Lending multiples from AAM thread

Seems like reverting to “prudent” lending practices hasn’t exactly arrived. The Brendan chap seems excited. Maybe he doesn’t know you’re supposed to repay these things.

If these numbers are accurate, a number of lenders are still offering 6*joint income. I guess the Financial Regulator is ok with these? Your repayments would total about €1million on PTSBs 40yr £436k.

Those multiples are bonkers. The couple earning 70k p.a would have a mortgage payment of 2,102 a month on the Permanent TSB loan of 436,000 (at 5% over 40 years).

That would be 36% of gross salary (and about 50% of net) gone on the mortgage payment alone, without any padding for future rate hikes. That’s before insurance, heating, electricity, maintenance and all those other housing expenses.

The traditional guidance for as long as I can remember was to keep TOTAL housing costs within 30% of your gross income.

They are laughable alright.

40yr and rent-a-room is the key here which bump the totals up a fair bit. Makes you wonder about a married couple under 30(many of these around these days?) getting their own place when they have to rent a room to a stranger to meet payments!

Didn’t say if they are 92% or 100% or even interest only mortgages, wouldn’t be surprised if it was one of the last two.

Wouldn’t some weed-smoking hippy with purple glasses be just fantastic to have around the house when you’re a happily married couple with a few sprogs on the way. Auntie Mary would be just delighted to chat to him on lazy Sunday afternoons whilst “Auntiques Roadshow” is playing in the background.