Mortgage Offer Amount

Minrich

Right.....

The lowest house price near us is around £140k and i have just done this calculation on Santander Website for my daughter and her partner . The amounts they earn are approximate but near enough for this process , they have £30k deposit , who else has £30k ? or more ? Anyway look what Santander offered them in a loan amount !
They pay £500 per month for their rented house and have paid this for 4 years whilst saving etc .
How are they expected to get their own house if other companies are the same as Santander ?





So according to Santander they can afford a house worth £85k !

kingstreet

I'm getting £160,000 over 25 years, so what have you put in there?

Dependents? Childcare? Credit? Mortgage term?

These calculators are very accurate if you have accurately entered the correct figures in the right places?

You haven't entered the rent have you?

~Beanie~

Its the £600 committed monthly outgoings that's killing them, if you run the calculator again without this, they can borrow up to £139,852.

What is the £600 for?

betmunch

Use a different lender?

Minrich

The £600 is for food , insurance , council tax , electric/gas , running car.
They have no debt , credit cards , dependents and obviously no rent as they would have a mortgage .
Not likely to use Santander but trying to get some idea on how much mortgage they could get together , this does seem ridiculously low amount

Senior_Paper_Monitor

You are using the calculator incorrectly (far too many items in the 'committed monthly expenditure box)


They should be good for £120,000 plus with the majority of lenders

Minrich

I went through the calculator again and have seen that the committed amount does not include food/utilities etc ! I had read it as include rather than do not include !

Over and Out !

£139k ish is how much it amounts to

Thrugelmir

Minrich wrote: »

they have £30k deposit , who else has £30k ? or more ?

Depends how committed people are to saving. And not wasting money by buying on credit.

phona

So out of interest, what should be included in committed expenditure? The examples they give are school fees and fees for other properties but what else?
For example, my monthly outgoings boil down to gym membership, council tax, utilities, mobile phone and of course rent and I pay insurance annually. Does any of this count?

I'm saving towards a deposit and would like to know how these calculators work.

Senior_Paper_Monitor

Varies by lender phona - most sites (both public and intermediary) give limited information about what should and shouldn't be in there - we regularly have to check with individual lenders whether we have got the correct items accounted for, specifically on 'tight cases', before committing to an application.