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  • FIRST POST
    • schuey87
    • By schuey87 4th Oct 17, 10:17 PM
    • 42Posts
    • 2Thanks
    schuey87
    Affordabiliy criteria question
    • #1
    • 4th Oct 17, 10:17 PM
    Affordabiliy criteria question 4th Oct 17 at 10:17 PM
    Interested to know whether affordability criteria is based on lenders looking closely at your bank statements or budgets?

    We have not been very careful in the last couple of months with budget and have spent a fair bit more than we usually would with little extras DIY wise to get our house ready for market and not only that but just general day to day life not been too worried about spending small extras here and there which all add up, reason being we are getting some extra money coming in so haven't been strict about our budget because we know we can make it up off the money we have gotten.

    Had loosely been looking at houses and now seen one we like. Am concerned that if lenders base decision on last few bank statements they will see lots of extras and deem that we won't be able to afford a new mortgage (we wouldn't if we lived like this!) I know realise we probably should have been more sensible in last few months if we were looking loosely at houses but too late for that. Does anyone know if this is very likely to harm our chance of getting a new mortgage? Mortgage looking at is probably around 3.7x joint salary.
Page 1
    • marliepanda
    • By marliepanda 4th Oct 17, 10:41 PM
    • 4,723 Posts
    • 9,511 Thanks
    marliepanda
    • #2
    • 4th Oct 17, 10:41 PM
    • #2
    • 4th Oct 17, 10:41 PM
    I havent given any bank statements for mine.

    They asked us to fill in a budget planner, then used standardised numbers for most of it anyway based on similar households, so the budget planner was pointless (except fir I suppose if people had car finance, loan repayments etc)
    Survey Earnings 2017 - £163
    • amnblog
    • By amnblog 5th Oct 17, 7:27 AM
    • 9,855 Posts
    • 3,815 Thanks
    amnblog
    • #3
    • 5th Oct 17, 7:27 AM
    • #3
    • 5th Oct 17, 7:27 AM
    No is the answer.

    Affordability is based on regular income and outgoings, dependents, credit scoring, and potential changes.

    It is not based on arbitrary spending.

    Such spending, exceeding overdraft limits, will of course cause a complication.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, 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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