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Mortgage Calculators

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I realise this is probably a very stupid question, but I would be grateful if you could bear with my ignorance. I'm not too hot on finances anyway but mortgages/remortgaging is a very definite weak point.

I have just been playing around with the London & Country mortgage calculator. I decided to put in £10792 as salary in both Your salary and Your partners salary boxes. The results show
"You would be able to borrow between £64,752 and £91,732".

(I choose this salary figure as a 35 hour a week job on the minimum wage, and it doesn't reflect our actual earnings so wouldn't be used for an application; I was just interested).

What then affects the range of results? Is it just the lender or is it outgoings or value of the house ie how do you get to borrow £91K as against £64K?

While I am here, how does income other than salary affect an application (for a remortgage)? For example, maintenance for a child that has been paid monthly for a number of years. Does it affect the amount you can borrow, or just increase the likelihood of a mortgage application being successful?
:heartsmil When you find people who not only tolerate your quirks but celebrate them with glad cries of "Me too!" be sure to cherish them. Because these weirdos are your true family.

Comments

  • hcb42
    hcb42 Posts: 5,962 Forumite
    it will vary depending on the multiples that different lenders will allow, and indeed how much existing credit there is etc.

    I dont know about maintenance and mortgages, sorry.
  • kingstreet
    kingstreet Posts: 39,256 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    They've used an illustrative range from 3 x joint incomes upto 4.25 x joint incomes to provide a guideline figure.

    To get a more meaningful figure, you have to have accurate information on both income and outgoings. For example, the calculator on the Halifax intermediary site;-

    http://www.halifax-intermediaries.co.uk/tools_and_calculators/mortgage_affordability_calculator/default.aspx

    gives us the opportunity to differentiate between basic income, bonus, overtime and commission. We can also add in other income such as maintenance, tax credits etc.

    You then move to the outgoings and have to allow for credit commitments which will continue into the mortgage.

    Finally, the term, loan to value, number of dependents and an estimate of the likely credit score pass level completes the picture.
    I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.
  • whitewing
    whitewing Posts: 11,852 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Thank you both. This is looking interesting. I shall have a play with the Halifax one later.
    :heartsmil When you find people who not only tolerate your quirks but celebrate them with glad cries of "Me too!" be sure to cherish them. Because these weirdos are your true family.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    The other starting point is to work out what you can afford.
  • whitewing
    whitewing Posts: 11,852 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    I have been able to afford our existing repayments plus some overpayments. Just wondering if I can get a better deal when the fixed term comes to an end.

    Does child benefit count as other income? Couldn't see it on the Halifax calculator.
    :heartsmil When you find people who not only tolerate your quirks but celebrate them with glad cries of "Me too!" be sure to cherish them. Because these weirdos are your true family.
  • kingstreet
    kingstreet Posts: 39,256 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    whitewing wrote: »
    I have been able to afford our existing repayments plus some overpayments. Just wondering if I can get a better deal when the fixed term comes to an end.

    Does child benefit count as other income? Couldn't see it on the Halifax calculator.
    Yes. It's included in the tax credits entry.
    I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.
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