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Rent affordability calculator

Li0nhead
Li0nhead Posts: 16,922 Forumite
Part of the Furniture 10,000 Posts Combo Breaker
edited 25 March 2012 at 8:33PM in House buying, renting & selling
Just found one of these.
Anyone agree with it?
http://www.cliftonandco.co.uk/lettings/affordability-calculator

Never rented before an am looking to. If its a true reflection then i can afford higher than i have been looking at (going to still to my current budget even after reading).

Seems a little on the high side according to it i can afford roughly property £100PM above what i am looking at and I am looking at the lower end of the market so its a big percentage jump.
Hi there! We’ve had to remove your signature. It was so good we removed it because we cannot think of one so good as you had and need to protect others from seeing such a great signature.
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Comments

  • girl_withno_name
    girl_withno_name Posts: 1,530 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    According to this calculator I could afford somewhere 3 times what we currently pay in rent... Which would be doable, but would make saving for a deposit difficult , especially once you start factoring in other bills (seems to suggest affordability of roughly half our take home pay)
    You were only killing time and it'll kill you right back
  • Li0nhead
    Li0nhead Posts: 16,922 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Found another one:

    http://www.rentshielddirect.com/affordability_calculator.php
    affordability_table.gif

    Still seems high?
    Hi there! We’ve had to remove your signature. It was so good we removed it because we cannot think of one so good as you had and need to protect others from seeing such a great signature.
  • girl_withno_name
    girl_withno_name Posts: 1,530 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    For me, this gives about the same answer as the first one
    You were only killing time and it'll kill you right back
  • Li0nhead
    Li0nhead Posts: 16,922 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    no doubt the same calculation is used.
    Hi there! We’ve had to remove your signature. It was so good we removed it because we cannot think of one so good as you had and need to protect others from seeing such a great signature.
  • Alizarin
    Alizarin Posts: 430 Forumite
    Part of the Furniture Combo Breaker
    Both give me a figure £200 higher then what I'm paying currently - I could probably afford that, but it would halve my available money after rent and bills, so no thanks!

    They both seem too high/unrealistic in practice?
    :www: Saving for a deposit - Target £30k by 24/03/14 (30th Birthday!) :www:
    Current Savings - £18,153.11 / 60.51%
  • dodger1
    dodger1 Posts: 4,579 Forumite
    These are calculations made by EAs, thay want people to think that they can afford to spend more on their rent than they actually can. Ignore them.
    It's someone else's fault.
  • Brallaqueen
    Brallaqueen Posts: 1,355 Forumite
    Was the same rough calculation when I worked in the industry - earnings had to be 2.5x the total rent for the year.

    Guarantors had to be 3.5 x (so on 500 pcm, the tenant had to be earning 15k and the guarantor 21k). I always felt this was too high (no way could I afford £500pcm on 15k wages!)
    Emergency savings: 4600
    0% Credit card: 1965.00
  • hellokitty08
    hellokitty08 Posts: 1,878 Forumite
    Debt-free and Proud!
    :eek:ohhhhh!

    It says on that I can afford up to £700 a month on rent!

    I pay £425 where I live and by the time you have added all your bills, (water, council tax, elec, gas, internet TV license) petrol, general car costs and food I dont have much left.

    So £700 on rent would be far too much of a stretch!
    Debt free since July 2013! Woo hoo! The bank actually laughed when I said I have come in to cancel my overdraft.
  • bap98189
    bap98189 Posts: 3,801 Forumite
    Part of the Furniture 1,000 Posts
    Put my salary in and it is suggesting that I should be able to spend 60% of monthly income on rent. That's frankly ridiculous.
  • GAH
    GAH Posts: 1,034 Forumite
    Most referencing agencies that work on behalf of letting agencies will generally always work the affordability based on 3 times the applicants salary.

    Very rarely do any of these agencies take into account peoples outgoings, this is left up to the letting agencies to check, which again most don't do.
This discussion has been closed.
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