Would this affect affordability?

edited 30 November -1 at 1:00AM in Mortgages & Endowments
6 replies 1.1K views
Barclayloan_queryBarclayloan_query Forumite
70 Posts
edited 30 November -1 at 1:00AM in Mortgages & Endowments
[SIZE=-1]Hope those in the know can answer this for me... I'm hoping to buy a shared ownership property, where I live S/O is hot property and sells within days, often with unaffordable/unwarranted premiums added if it reaches the open market. I've been ready to buy for a few months now but have so far missed out.

I know to ideally avoid taking any extra debt / credit checks around the time of any mortgage application (which could be in a week, or in a year depending on when I find a house to buy!) [/SIZE][SIZE=-1][SIZE=-1] [/SIZE][SIZE=-1][SIZE=-1]I'd be looking to buy a house up to 200k, max would be 50% share so 100k with my 10k deposit.[/SIZE][/SIZE] but was wondering whether the following would be likely to affect affordability...

I'm looking into a cheap lease car, £100 per month for a 2 year deal - at the end of which you hand the car back and start again. [/SIZE][SIZE=-1][SIZE=-1] I earn 30k, have no debt, no dependants and own my current car outright so no current car finance.

Would [/SIZE]adding a £100 per month commitment be likely to affect affordability on a 100k share of a 200k house in the above circumstances?[/SIZE][SIZE=-1] [/SIZE]

Replies

  • betmunchbetmunch Forumite
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    Any debt affects affordability.

    The question you need to ask is will it affect my affordability too much.

    And the answer can only be accurate from someone who has done a full fact find with you.

    What has your broker said?
    I am a Mortgage Adviser
    You 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.
  • betmunch wrote: »
    Any debt affects affordability.

    The question you need to ask is will it affect my affordability too much.

    And the answer can only be accurate from someone who has done a full fact find with you.

    What has your broker said?

    I don't have a broker as a) I don't have a house to buy yet and b) I intend to apply direct - hence why I was asking a Q on this forum.

    For the benefit of anybody else reading the thread with a similar query, there is a mortgage affordability calculator on the Nationwide intermediary site...

    With my current situation of no debt the calculator shows £123,600, with a £100 per month commitment it reduces to £108,700... so it would potentially affect affordability to the tune of nearly £15000!
  • amnblogamnblog Forumite
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    What about the affect of the rental payment?

    Have you factored that into affordability in addition to the car payment?
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, 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.
  • amnblog wrote: »
    What about the affect of the rental payment?

    Have you factored that into affordability in addition to the car payment?

    Yep, the Nationwide calculator allows you to select shared ownership and then asks the annual commitment for the rent element.
  • kingstreetkingstreet Forumite
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    Did you make an allowance for ground rent and service charges as well?

    The property has to be leasehold and one HA we represent charges £540 a year for these, in addition to the shared ownership rent.
    I am a mortgage broker. You 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. Please do not send PMs asking for one-to-one-advice, or representation.
  • kingstreet wrote: »
    Did you make an allowance for ground rent and service charges as well?

    The property has to be leasehold and one HA we represent charges £540 a year for these, in addition to the shared ownership rent.

    I'm only interested in a house, round here they don't tend to have service charges on houses unless it's a new build. None of the properties I've gone for have had a ground rent attached either, not sure if this is a house v flat thing?

    Buildings insurance is sometimes listed as a 'service charge' on certain HA websites but this is £9 per month and on the NW calc I put £120 per year to cover it.
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