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  • FIRST POST
    • tuck60
    • By tuck60 9th Jun 17, 6:30 PM
    • 14Posts
    • 2Thanks
    tuck60
    Disposable Income FTB
    • #1
    • 9th Jun 17, 6:30 PM
    Disposable Income FTB 9th Jun 17 at 6:30 PM
    Have been saving pretty intensely for the last year or so and now in a position to reserve a property off plan that will be completed August time. I have my AIP and have done the numbers etc and it is affordable. After all bills and food and fuel I believe I would be left with around £450 per month. Out of experience does that seem like a low amount or normalish amount? I have the option of getting a lodger in if needed If it does become a struggle.
Page 1
    • ACG
    • By ACG 9th Jun 17, 6:35 PM
    • 15,036 Posts
    • 7,600 Thanks
    ACG
    • #2
    • 9th Jun 17, 6:35 PM
    • #2
    • 9th Jun 17, 6:35 PM
    Its not so much what you think is affordable but what the lender thinks.
    Also you are doing your sums based on the rates available, where as a lender is doing the sums based on an assumed interest rate of 6-8%.

    So you need to really have a mess around on some affordability calculators or get a broker to check for you.

    There are only 1 or 2 lenders who will take lodger income into account so relying on that reduces your options massively.
    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.
    • Thrugelmir
    • By Thrugelmir 9th Jun 17, 6:36 PM
    • 54,285 Posts
    • 47,072 Thanks
    Thrugelmir
    • #3
    • 9th Jun 17, 6:36 PM
    • #3
    • 9th Jun 17, 6:36 PM
    If interest rates were to rise say 2% or 3%. Would this stretch your budget? One needs to consider all eventualities. Plan for the unexpected.
    “ “Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.” Sir John Marks Templeton
    • tuck60
    • By tuck60 9th Jun 17, 9:16 PM
    • 14 Posts
    • 2 Thanks
    tuck60
    • #4
    • 9th Jun 17, 9:16 PM
    • #4
    • 9th Jun 17, 9:16 PM
    Its not so much what you think is affordable but what the lender thinks.
    Also you are doing your sums based on the rates available, where as a lender is doing the sums based on an assumed interest rate of 6-8%.

    So you need to really have a mess around on some affordability calculators or get a broker to check for you.

    There are only 1 or 2 lenders who will take lodger income into account so relying on that reduces your options massively.
    Originally posted by ACG
    Well my AIP went through fine and my adviser thinks the mortgage will also if I choose to proceed. I am not taking the lodger into account. Once the mortgage and all my bills/food etc have been paid I would have approx £450 left for personal use. Any lodger would just add to that.
    • tuck60
    • By tuck60 9th Jun 17, 9:17 PM
    • 14 Posts
    • 2 Thanks
    tuck60
    • #5
    • 9th Jun 17, 9:17 PM
    • #5
    • 9th Jun 17, 9:17 PM
    If interest rates were to rise say 2% or 3%. Would this stretch your budget? One needs to consider all eventualities. Plan for the unexpected.
    Originally posted by Thrugelmir
    Would be on two year fix to begin with, hopefully when that reaches the end I could look at remortgaging.
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