What is considered as financial commitment on a mortgage?

Mahmed1

Hi all

I have a problem and was hoping you could please help me

What is classed as a financial commitment on a mortgage application

Hoping you can help me and guide me further and break it down for me.

Several of online mortgage calculators say include financial commitments but state
NOT to include household bills, any insurances, petrol etc as a commitment

Now i don't know what to not include and what to class as financial commitment and i know i am inputting the wrong figures.

Can you please advice which of these i can or cant disregard as a commitment:

Food
Gas/Electric/water
Council tax
Tv licence
Petrol
Mobile phone
Specsavers
Fridge insurance
Washing machine insurance
Sky
Countrywide contents insurance
Friends Life insurance (life insurance)

Child care (please note that this is paid by the child tax credit so not sure if i should include this)

Can you please be kind enough and go through the above list to see which 1 from the above list i don't need to include and need to include when i input the financial commitment on the mortgage calculator.

At present i don't know what this financial commitment is based on my list and i feel I'm always putting in the wrong figures

Is child tax credit included as an income as some say it does and others (not many) say it is not included. With me my tax credit pays for my childcare therefore if its included as my income, then this is covering my childcare
If it is not included then i should be excluding any childcare as a commitment as this is already covered by the tax credit.

please help me with my list and confirm
Which 1's from the list i should include or not and also if tax credit is included as an income

This will help me massively and help me ease my stress levels

Thank you sooo much and i really would appreciate this help

Thank you

lee111s

It usually means credit card payments, loan payments, hire purchase etc.

amnblog

Child care would be a financial commitment.


As to whether child tax credit is included in income, that depends on the Lender.


As we have said before on the forum, Lender's affordability calculators are only near accurate if the right information goes in, in the right way. If you are not experienced with the calculator you have little chance of getting it right.

Mahmed1

Thank you

So am i right in saying that
Sky, specsavers, insurances (life, contents, washing machine, fridge), food, petrol, gas/electric/water bills, tv licence, council tax, mobile etc
Are not not included as a financial commitment from my list
But
Childcare is included?

Thank you once again

Ps can i include Overtime in my income.
My company offers overtime but i have not done any overtime. As this is an option there for me, can i include that as an incoming?

Mahmed1

Again just want to thank you all for your advice

Much appreciated

Other than your standard loan, credit cards and child care

Can you give examples of what is classed as a commitment

Ie grattan, littlewoods etc are they included as you can pay a minimum fee of what ever you want to give on a monthly basis. There is no set amounts ther

It would be good to have an understanding of what kind of things is included

Thank you

amnblog

Mail order is a perfect way to damage your credit file - after mobile contracts the most common caused of credit file blemishes.


They would be classed as commitments.

Mahmed1

Hi

Sorry not sure what you mean by mail order affects credit file?

Are you referring to grattan, littelwoods as commitments or my list in post 4?

Is this correct

Sky, specsavers, insurances (life, contents, washing machine, fridge), food, petrol, gas/electric/water bills, tv licence, council tax, mobile etc
Are NOT CLASSED as commitments

Childcare, loans, credit cards, grattan, littlewoods
Are CLASSED as commitments

amnblog

If you are tight on affordability, have the lender run the calculator for you, or preferably engage a mortgage broker.

Mahmed1

Hi

I am able to afford it but just for my own sanity when complete the mortgage calculator online, i just wanted to know from my list, what is included as financial commitment or not. Just wanted someone to highlight what is included. I do appreciate your help

Just a simple yes (included) or no (not included) next to the list would really really help me

Sky
Specsavers
Insurances (life, contents, washing machine, fridge)
Food
Petrol
gas/electric/water bills
Tv licence
Council tax
Mobile
Childcare
Grattan
Littlewoods

Thank you