Mortgage Calculators

whitewing

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?

hcb42

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

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.

whitewing

Thank you both. This is looking interesting. I shall have a play with the Halifax one later.

getmore4less

The other starting point is to work out what you can afford.

whitewing

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.

kingstreet

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.