Mortgage Affordability Query

WillyWonga

Hi all,

Looking at a new build property at £130k and have a £40k deposit as house just sold so roughly a 69% LTV.

Builder has pushed us towards their preferred broker to "assess us" and came back as ok but when gone to credit checks come back as "refer" - they have asked questions about some benefits.

This is what I have tried to explain to the broker - my son who gets the benefits turns 16 next year so the award runs out. Forms are usually sent 6 months before expiry as goes onto adult version. I gave the income figs as of now for the lender as if I put down the worst case situation and not include the benefits they may query where extra income is coming from. Naturally a lender will want the worst case scenario but its trying to get it across to them. I have 2 children and will be applying with my wife who is classed as my sons full time carer.

I have a £22k job and if based on the worst case scenario then if no benefits after 16 its a straight child benefit and tax credit for my other child which will bring total income up to £25k ish. Will be a car loan of £147 and credit card of £150 month stopping - rest of debts will be cleared by equity.

Any ideas if on the worst case scenario I can achieve £90K with the 2 debts mentioned just on a £25k income. Credit records both myself and wife all clean.

Many thanks in advance.

kingstreet

What you can borrow is a function of your verifiable income, outgoings and the term of the mortgage. This will vary from lender to lender. Without an analysis of those details and the chosen lender, we can't actually answer your questions.

As you've gone through this with a broker, I can only suggest you put them to the broker and get a reliable answer based on your actual circumstances.

WillyWonga

Hi, may be crossed wires as not my thread.

Im not using help to buy. I have sold my house and will come out with £40k cash to put down on this new build.

The broker emailed the lender regarding the refer and they came back with the benefits questions.

kingstreet

Sorry, mis-read on my part.

Saw the "W" and put 2 + 2 together.

WillyWonga

Can anyone suggest a good affordability calculator? The ones I have seen vary widely. Many thanks

kingstreet

You'll need the calculator of the lender the broker has put the case to. Some lenders are more generous than others.

However, the big issue is what outgoings you have to input. One calculator you input only credit commitments, student loans, childcare etc.

Others you enter council tax, buildings insurance on top of the above.

Finally, you get others still where you input all your monthly spend.

Linking you to the calculators we use relies on you knowing what to input and where. This may not provide an accurate output.