How much do dependents affect mortgage affordability?

lucy_l0cket

Just a theoretical question really (for future planning!) ... If a mortgage applicant were to have children, how much would it affect what mortgage providers are willing to lend as opposed to a childless application?

For argument's sake, based on the following figures:

House price: £165,000
Deposit: £26,000
Salary: £38,500

Would be interested to find out

Wh05apk

Quite considerably, have a look at : http://www.nationwide-intermediary.co.uk/calculators/aff_calc

and play around with the figures yourself, a single applicant with no kids, could get upto 5 x, with 2 kids and a dependent partner, could be 3x depending on lender.

lucy_l0cket

Crikey, that's a huge difference.

I suppose I can see the logic behind it, as they assume that there are more financial outgoings when children are involved. By that reasoning, shouldn't they take into account the likelihood that a person or couple would have children and reduce their ability to pay the mortgage in the future and thus be a greater risk? If we ever got a mortgage, I would feel like I had to ask the lender's permission to have babies!

Thrugelmir

lucy_l0cket wrote: »

I would feel like I had to ask the lender's permission to have babies!

Financial common sense surely? Why over commit on one of the most important purchases in your life. If you've plans to raise a children in the near future.

lucy_l0cket

Only meant tongue in cheek I assure you. Obviously house purchasing and children require financial planning Was just interested to find out how much lenders think children cost!