Affordability calculator question

WLITC

When you complete affordability calculators do you typically include items such as groceries, electricity etc? The calculators on Nationwide and Halifax suggest they'll lend me about £236-£245-ish but don't seem to want to know about groceries or utility bills, but then on the calculator on the Mortgage Advice Service site it asks for a lot more detail on bills, spending on entertainment, money for holidays etc and suggested up to £200k?

So what's the norm? Do non-high street lenders tend to count in all outgoings including entertainment, hols, etc?

ACG

It varies, some lenders use ONS figures more than others. You need to read the notes and pointers on the calculators. Im not sure about nationwide specifically as I do not use them a lot.

amnblog

The Mortgage Advice Service aren't going to lend you any money, nor give you any 'advice' any time soon.

tuda

Many lenders use fixed costs (based ONS statistics) for things such as electricity, gas, groceries etc.

However, things like council tax, service charge, ground rent, home insurances, school fees, childcare, child maintenance, travelcard, and pension contributions are usually not included in the above. The way lenders calculate affordability varies though, so you're best using a broker if you have any issues.

sitesafe

I found more detailed affordability calculators by looking at the 'for intermediaries' websites for the banks. For example...


http://www.nationwide-intermediary.co.uk/calculators/aff_calc
(which also refers to its 'more basic' calculator on its main site.


or
http://www.santanderforintermediaries.co.uk/calculators-and-forms/affordability/

etc etc just do a google search with the bank name and 'intermediaries' next to it.


They are meant for the mortgage professionals to use but I guess the affordability calculators would give more accurate results even though some of them are still different

kaylajane

The full nationwide affordability calculator (the one that takes into account credit cards etc) seemed very accurate for us. Our DIP was exactly the same as the calculator said we could possibly borrow