We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

First Time Buyer Question - Affordability

Options
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?
July MB Challenge- £300.00 got £301.14
August MB Challenge - £300 got £524.90
Septembet MB Challenge- £300 got £0 (just started)

Comments

  • MortgageMamma
    MortgageMamma Posts: 6,686 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    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
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • ferrett
    ferrett Posts: 198 Forumite
    Part of the Furniture Combo Breaker
    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.
    July MB Challenge- £300.00 got £301.14
    August MB Challenge - £300 got £524.90
    Septembet MB Challenge- £300 got £0 (just started)
  • Melissa177
    Melissa177 Posts: 1,727 Forumite
    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.
    Errors of opinion may be tolerated where reason is left free to combat it. - Jefferson
  • ferrett
    ferrett Posts: 198 Forumite
    Part of the Furniture Combo Breaker
    bump!!!!!!!!!!!!!!!!!!!!
    July MB Challenge- £300.00 got £301.14
    August MB Challenge - £300 got £524.90
    Septembet MB Challenge- £300 got £0 (just started)
  • JoeK_3
    JoeK_3 Posts: 1,374 Forumite
    ferrett wrote: »
    bump!!!!!!!!!!!!!!!!!!!!

    Have you tried Standard Life and Scottish Widdows banks

    JoeK?
    I am an Independent Financial Adviser.
    Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.
  • ukmonkey
    ukmonkey Posts: 3,024 Forumite
    Part of the Furniture Combo Breaker
    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
    homer_j_3 Posts: 3,266 Forumite
    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...
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    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
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.