Affordability calculations by bank

Lauren84

Ive just been in to speak to a mortgage advisor at HSBC and have been told that I can borrow £135,000.

This however seems quite low given the fact that myself and partner have a combined income of £80k a year and I was wondering if the mortgage advisor has incorrectly calculated our outgoings??

We currently rent separately but are looking to get a mortgage so that we can live together but in her affordability calculations she has taken our current monthly outgoings which is 2 x rent and utility bills and credit commitments.

This is obviously not representative - as we will not be paying rent or 2 lots of council tax when we are living together.

Does anyone know if there are standard practices for calculating affordability and outgoings of those applying for mortgages.

I welcome any advice!

GMS

Top quality 'adviser' from a bank!!

Obviously the rent will not remain as a commitment so should not be in there.

Point this out to them and see what happens.

TMSL

You have to love the bank "advisers" taken off of the street, sent on a one week course and sent out and let loose on the public. This thread really is a classic example of bank advisers.

Senior_Paper_Monitor

Hear, Hear GMS and TMSL !!!

And what is worse is that the FSA condone this sham continuing, with absolute numpties (in many, but not all cases) meandering around masquerading behind label and desk badges and cards suggesting they are 'advisers', 'consultants' etc ...... as a result of which a large percentage of the public believe they are getting advice when they are being sold to.

magpiecottage

I thought I did quite well when I got lots of distinctions in my mortgage exams.

It seems I was under the misapprehension that you needed at least some intelligence to pass!

dunstonh

The word "adviser" is used too much by banks for staff that are not advisers but clerks. Are HSBC clerks actually advisers or "information only"?

For the benefit of the OP, last year C&G turned me down for a mortgage that was just over 1x joint income. The bank clerk in that case (as she wasnt an adviser) decided at some point to put my wife down as a non earner and cut my income in half as it was a partnership and the clerk thought that meant I only got half the income (her assumption that partnership meant that I only got 50% of my earnings. I had to explain turnover, gross and net profit to her as well as pointing out that my wife was the other partner). So effectively the bank had a joint income figure of nearly 25% of what it actually was.

I was gobsmacked at the rejection as it was about as good a mortgage application as they could get. They did correct it when I pointed out their error but the person dealing with it didnt have a clue. That is i'm afraid the typical position of many bank clerks who have been thrown into a role of responsibility or try to masquerade as something they are not. Never did get an apology.