Natwest - affordability software

michaelc23

Hi guys,

Hoping someone could help here.

Basically i own my flat with my brother and he wants to move out. I was told off natwest i could manage a £26000 mortgage which was fine obviously to give to my brother. My income is 11200 a year and i only have a car loan at 163 a month then just usual expenses elec gas etc.

They said that was fine so i handed them my pay slip and my mortgage advisor just came back to me today to say there affordability software will only allow me £14000. My mortgage advisor asked natwest why and even they were not sure why this was.

Why is this, any reason?

Any help would be much appreciated.

Let_Us_See

Quite simple....affordability. These days the vast majority of lenders use affordability models to assess borrowing capacity. In your case you have a declared income £11,200 and NatWest assumes a certain portion of this will be used for everyday existence and living expenses. They would then annualise your existing financial commitment of £163.00 pm (£1956 pa) and further deduct this from the balance of income. Any remaining funds would be used for mortgage purposes, or borrowing capacity. In this case NatWest has calculated this at £14,000. There is no mystery!

If your adviser had used the affordability calculator on NatWest's website it would have confirmed a lending level of just under £14,000.