The UK is unusual in that the majority of adults aim to own their own property as soon as they can. We are not a nation of renters if we can buy and this means that a robust mortgage industry is available for the use of. Current mortgage rates vary, as they generally do. For a person who holds a 10% deposit, a two year fixed rate will be approximately 5.22% and a five year fixed, about 5.16%. The rates for a higher loan to value ratio, i.e. 90% LTV two year fixed rate would be in region of 4.68%. Every application is treated separately and all sorts of information is taken into account when applying. Bearing in mind that all quoted rates are ‘average’ and any specific rate offered will be entirely dependent on deposit fund available, credit history for each buing applicant and employment record. A lender definitely needs to know that the applicant’s prospects are good, that he/she is trustworthy and is likely to be employed for the forseeable future.
In the 1960s mortgage lenders only took the husband’s salary into consideration and would allow only twice his salary value for lending purposes. It was quite frustrating for families when the wife perhaps own more money or earned more, but was generally not allowed to apply. As the housing bo0m rose in the 1980s, they did start to take 1 x the wife’s salary if available. Gradually it became 2.5 x main salary and 1 or 1.5 times secondary salary. Never more than 25 years and if the applicant was older, then a shorter replayment period came into force.