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First Time Buyer Question - Affordability
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ferrett
Posts: 198 Forumite

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?
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)
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Comments
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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 borrowI 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.0 -
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 £301.14August MB Challenge - £300 got £524.90Septembet MB Challenge- £300 got £0 (just started)0 -
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. - Jefferson0 -
bump!!!!!!!!!!!!!!!!!!!!July MB Challenge- £300.00 got £301.14August MB Challenge - £300 got £524.90Septembet MB Challenge- £300 got £0 (just started)0
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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.0 -
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!0
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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 AdviserYou 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.0 -
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:jI am a Mortgage AdviserYou 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.0
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