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  • FIRST POST
    • jan875
    • By jan875 17th Mar 17, 2:51 PM
    • 34Posts
    • 32Thanks
    jan875
    affordability calculators and Credit card debt
    • #1
    • 17th Mar 17, 2:51 PM
    affordability calculators and Credit card debt 17th Mar 17 at 2:51 PM
    Just been playing around online with some affordability calculators. I was surprised to see that even with £25000 credit card debt, the banks will still be willing to lend money on a mortgage. Is this really the case? According the santander intermediary calculator, we can borrow 245K, even with our current level of debt. If we were debt free it would be 345K!

    I don't want to borrow either of these amounts but I was surprised to see that they would lend us anything! Would a mortgage really be accepted for someone with 25k unsecured debts?
    Last edited by jan875; 17-03-2017 at 2:57 PM.
Page 1
    • ACG
    • By ACG 17th Mar 17, 2:56 PM
    • 15,497 Posts
    • 7,851 Thanks
    ACG
    • #2
    • 17th Mar 17, 2:56 PM
    • #2
    • 17th Mar 17, 2:56 PM
    Ive done one with £70k in loans and credit cards and another with £35k.

    It is all relative I suppose, if your incomes are enough to support it then yes. But one thing to bare in mind is that some lenders have "Debt to income" rations in the background that may not be picked up on the calculators. If your debt is more than around 30-50% or your income it would be an automatic decline, no matter how affordable it is - but not all lenders have that calculation.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • jan875
    • By jan875 17th Mar 17, 2:58 PM
    • 34 Posts
    • 32 Thanks
    jan875
    • #3
    • 17th Mar 17, 2:58 PM
    • #3
    • 17th Mar 17, 2:58 PM
    Ive done one with £70k in loans and credit cards and another with £35k.

    It is all relative I suppose, if your incomes are enough to support it then yes. But one thing to bare in mind is that some lenders have "Debt to income" rations in the background that may not be picked up on the calculators. If your debt is more than around 30-50% or your income it would be an automatic decline, no matter how affordable it is - but not all lenders have that calculation.
    Originally posted by ACG
    Is there any way of finding out who those lenders are?
    • ACG
    • By ACG 17th Mar 17, 3:06 PM
    • 15,497 Posts
    • 7,851 Thanks
    ACG
    • #4
    • 17th Mar 17, 3:06 PM
    • #4
    • 17th Mar 17, 3:06 PM
    I dont think there is a public list anywhere.
    I have one but it is something I put together for a trainee I have working for me. Its not really something I can post I am afraid as our industry is heavily regulated.

    The only way you would find out is checking the lenders criteria online or calling them to ask. To be honest, that is something I would always call up about anyway if I was doing it for a client.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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