Do mortgage companys look what your paying out as well as income?

BrettMorganxD

Example if I wanted to learn to drive then got car insurance lets just sday it is £50 a month (it will be more).

Will they deduct £50 a month from your wage to check affordability do they look through every bill?

ACG

No, they take into account regular payments (council tax, loans, HP etc) not something that can be stopped at any point you wish,

BrettMorganxD

ACG wrote: »

No, they take into account regular payments (council tax, loans, HP etc) not something that can be stopped at any point you wish,

so car insurance would not be included? i can see why loans and hp is included but if they inclue council tax does that mean they include gas electric and water, although they are all variables.

Gentoo365

Some will do an affordability questionnaire and may include transport costs. They will almost certainly ask about any car financing. However anything that is 'optional' spending is not as important.

Unless a particularly attentive underwriter sees that you live miles away from where you work and considers that spending 'fixed'.

They will not want to see an insurance bill. However they will probably ask for statements (or if you bank with them, just look). They don't really care how you spend your spare money. They are just looking for fixed (non-optional) outgoings.

Gentoo365

BrettMorganxD wrote: »

so car insurance would not be included? i can see why loans and hp is included but if they inclue council tax does that mean they include gas electric and water, although they are all variables.

It is not 'fixed' in that sense. It is 'fixed' in the economic sense. As in money you have to pay before you even do anything.

So it really means 'non-optional'.

ACG

Sorry i seen learning to drive and thought you meant lessons - not insurance.

In all honesty im not sure about car insurance, they do take into account utility bills when looking at affordability. Obviously theyre aware you will have those bills and its taken into account when working out initially what they will offer you - but if you had a canabis farm or sunbed in your loft then your electric bill is going to be a lot higher than someone who doesnt so they want to know the figures (i suppose you could argue your income would also be higher in that case :P ).

Those are really bad examples, they were the first things i thought of but it gives you an idea.

BrettMorganxD

so basically best way to get a mortgage is to do nothing and have nothing.

I want to buy near my family which is 22 miles away from work so even on a train it is £1,666 a year (train season ticket) so theymay take this off my income?

I think my best bet is to just get a second job to up my income

ACG

Is it worth owning a property if you cant have anything?
Have you done any of the calculators on the lenders websites?

Depending on how much your looking to borrow and your income if your looking to stretch it, it might be worth speaking to a mortgage advisor?

BrettMorganxD

ACG wrote: »

Is it worth owning a property if you cant have anything?
Have you done any of the calculators on the lenders websites?

Depending on how much your looking to borrow and your income if your looking to stretch it, it might be worth speaking to a mortgage advisor?

i meant have nothing until the mortgage is granted. I mean on the calculator it says i can afford 300 on a grand a month. I could live like a king on the other 700

[Deleted User]

Well I am not a mortgage advisor!

BUT when I applied with Halifax, they wrote to me and asked for explenations as to what I had been paying out in the last 6 months.

For example they said why did you pay X on X date.

They were not all regular payments, so I don't know about what has been said so far. I was accepted but only when I had lied and said the loan and money I had paid back to my mother over the months was my savings! :cool:

ACG

BrettMorganxD wrote: »

i meant have nothing until the mortgage is granted. I mean on the calculator it says i can afford 300 on a grand a month. I could live like a king on the other 700

Any regular paymens will be deducted from what they will lend you, so from that sense the less you have the more you will get.

I wouldnt like to comment on the other bit but the lender would have done their checks and would be satisfied, you know what you can afford so thats for you to take the risks associated with that.

I know what i can afford and its a lot more than any bank would lend me.