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FTB can someone explain MMR checks
Rek88
Posts: 47 Forumite
I have a mortgage decision in principle which has just expired. I will have to go and get another, I am not too worried about affordability as the mortgage would be less than 20% of our net income.
What does worry me is the new MMR affordability calculations, with regards to regular outgoings. I would like to know what happens to FTB who have very little regular outgoings due to living with parents, ie. I have no utility bills, internet bill etc. Will the lender expect to see estimates of these bills in order to work out essential regular spending? I thought I would ask the question as there are probably many in my situation, living with parents in order to save up their deposit.
I have had a bit of research about MMR and it seems very open to interpretation. Sensible to lend to people who can afford the repayments, however no set rules or questions it would appear.
What does worry me is the new MMR affordability calculations, with regards to regular outgoings. I would like to know what happens to FTB who have very little regular outgoings due to living with parents, ie. I have no utility bills, internet bill etc. Will the lender expect to see estimates of these bills in order to work out essential regular spending? I thought I would ask the question as there are probably many in my situation, living with parents in order to save up their deposit.
I have had a bit of research about MMR and it seems very open to interpretation. Sensible to lend to people who can afford the repayments, however no set rules or questions it would appear.
0
Comments
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It is down to lenders interpretations.
A lot of companies are using figures from the ONS. These figures will be based on your circumstances - so if you are a single person, they will assume your gas bill is less than a family of 4 for instance.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 -
Lenders will expect you to declare all reasonable monthly expenses. If your s are low due to your situation it shouldn't be a problem.
The reason they do this is for the people with three kids who try and get round the system by saying they live on 100 a month for shopping etc. The systems are smart enough to know that outgoings for a single person won't be high.I am a Financial Adviser specialising in Mortgages, Protection, Health and Medical Insurance. I also write wills. All information posted on this site is for discussion only, and should not be taken as advice.0
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