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underwriters

storeton
storeton Posts: 70 Forumite
Part of the Furniture 10 Posts Combo Breaker
edited 1 April 2010 at 6:59PM in Mortgages & endowments
what is the rule of thumb underwriters use to see wheather you can afford a mortgage.Asking for £160k on£42k earnings with loans of £22k and cards of £6k
They ask for earnings and offset any borrowings and credit cards what percentages do they generally work on?
thanks

Comments

  • VIGILANT22
    VIGILANT22 Posts: 2,516 Forumite
    Depends on the lender..some are tighter than others...wouldnt expect you to get 160k with yr exisiting liabilities...how much a month do you pay to loan&cc?
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    You need to annualise all loan payments and then deduct from your income.

    You need to annualise your c/c payments at3% or 5% depending on which lender, and deduct from income.

    You can then apply income multiples/affordability calculator to remaining income.

    However lots of affordability calculators take more than this into account.
    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.
  • JA1000
    JA1000 Posts: 620 Forumite
    There are no rules when comes to underwriters!!
  • storeton
    storeton Posts: 70 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    JA,
    You have never written a truer word.
    Could they be the missing link?
    Thanks everyone for info much appreciated
    storeton:beer:
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