"Significant Committed Expenditure"

TJParsons

I have been playing around with affordability calculators, and just wanted to check the following:


"Please key the total monthly amount paid on any loans (including buy now pay later and interest free loans), hire purchase/car lease, student loans, budget accounts, mail order, overdraft (include 5% of balance) plus what is paid for child care, school or university fees, maintenance and any other significant committed expenditure not included elsewhere."


What should be included in these amounts as "Significant committed expenditure"?


- Utilities (Gas/Electricity/Water)?
- Internet?
- Mobile Phone?
- Gym?
- Food?
- Petrol?
- Car Insurance?
- Car Tax


Essentially, I'm just trying to understand to which level they include in these amounts, so that I'm getting an accurate guidance figure.


Thanks in advance.

dunstonh

Committed is expenditure that you have to make and cannot stop without an issue arising.

So, anything that fits that criteria.

Your mortgage broker would be able to help you on this if you are using one.

kingstreet

There's hardly anything left after that list but I'd say travel season ticket and ground rent & service charges would be the two obvious inclusions.

You should not include any discretionary spend as most lenders use ONS averages for "normal" outgoings and lenders know if push cam to shove you'd stop paying for the gym, the iPhone etc to keep a roof over your head.

As it varies from lender to lender, you'd need to ask them.

abundantia

That is from the Halifax calculator, right?

Not sure about the car-related stuff but on the Halifax one you don't have to enter utilities, council tax, gym, mobile, and food. I went through this with a broker recently, this is based on what he's told me.

If you have loans though (like a student loan) those need to be entered. Or if you're paying for childcare, or child support. And travelcard costs, service charges, and ground rent as kingstreet says.