Mortgage Affordability Calculators

westv

Just curious to know why these always include a section to input the persons outgoings relating loans but never seem to include an area to input other outgoings such as food, bills, council tax etc. Surely outgoings are outgoings whatever the purpose?

Comyface

I think the calculators use an estimated average for the things most people pay out for.

It then only needs to ask what you pay out to other borrowings, as that's likely to be more individual.

gizmo111

Most lenders have an amount that they ned to be surplus after paying the mortgage, I think it is something like £459 per single person, £729 per couple and an additional £100 per child. They then work out your affordability based on their SVR or an amount they choose, not on the deal you are taking. So for example Abbey bases affordability on a pay rate of 6%, but you could be taking a deal for 4.99. Others use the fixed rate if it is 5 years or more.

_Andy_

Things like loans are contractual and will usually be fixed per month.
Food is going to vary and could easily be cut back on.

Gorgeous_George

I think the reason is that they can make a good estimate of food, utility bills, council tax etc., and doing so makes the calculator easier to use or more difficult to get wrong.

GG