First Time Buyer Question - Affordability

ferrett

Im sure this question is answered all the time but ive had a quick search and couldnt find the answer.

Which lenders now decide the amount you can borrow by affordability?

MortgageMamma

Loads, but an affordability calculation may not be as generous as some income multiples that are currently available

why dont you give me a few more details and I will work out a basic affordability figure for you

Income
Employment type
Monthly credit commitments
Kids
term you want morgage over
Deposit
how much you would ideally like to borrow

ferrett

Joint Application.

Applicant 1:
£21,500 - Salary
£2,000 (Bonus - not guaranteed however never recieved less than £2k in 8 years)

Bank Manager - 27 yrs old
No dependants

£1k credit cards £12,500 loans (£220 pcm but this could be added to the mortgage to release the funds here)

Applicant 2 - Graduate:
£18,000 - salary

Clerical Assistant - Edinburgh University - 24 yrs old

£2k credit cards

£80pcm loan (£500 left) - ends in 6 months

looking for c£150k on a term of 25 or 30 years

No deposit really available, however I have several shares savings schemes 1st due to be available £4k next year, 4k year after, £6k after.

Melissa177

HSBC lend on an affordability basis, and do 100% mortgages. Rate isn't that great, however.

I remember asking them when I was looking for a mortgage offer - they would lend four times my (single) salary at 100%. I didn't end up going with them.

ferrett

bump!!!!!!!!!!!!!!!!!!!!

JoeK_3

ferrett wrote: »

bump!!!!!!!!!!!!!!!!!!!!

Have you tried Standard Life and Scottish Widdows banks

JoeK?

ukmonkey

Hey, mortgage advisors, what about RBS? I believe they lend on affordability and do 100% mortgages. Although I may stand corrected, you guys are the experts, not me!

homer_j_3

Rbs do affordability as do Natwest and the one account (all same company you see) Direct Line also do , as do skipton, alliance and leicester and bank of scotland. There will be many more that I have not got the inclination to try and think of.

With RBS and the group of companies I mention above attached to them - I have been led to believe that you can get more borrowing through a broker than direct. I did the calculations and they seem to be correct.

Whether any of these lenders are right for the OP'er- is a different question altogether.

RBS charge a wonderful Horrible Ladie Cardigan on 100% too...

herbiesjp

Plenty of lenders work on affordability calculations.

However there are plenty that work income multiples as well

Not surpringly, there could well be lenders from both sides of the spectrum that could look at this 100% scenario

Plenty have been named, so if you feel brave and confident enough them go for it

Otherwise find your self a good broker and let them do all the leg work for you

As homer rightly says - watch out for deals with higher fees, such as Higher lending fees, as not all lenders will charge them

Either way - good luck:j