Mortgage underwriting help

Glittergirl1980

Hello everyone

I'm currently applying to port my mortgage with Santander it has gone to the underwriters for affordability checks our monthly income is £2415 and out goings including mortgage is £1785 leaving £630 a month spare but they are only counting some of the income at 50% so by their calculations we only have £1900 a month so with outgoings of £1785 we only have £115 a month spare, I'm worried they will say this isn't enough and decline it? we have excellent credit scores and a 10 year perfect repayment history with them, does anyone know what amount of disposable income is acceptable? I'm worried sick as we need to move to the bungalow we have offered on as my daughter is disabled, any advice would be much appreciated.

KPike

Different lenders assess affordability in different ways. Some lenders use stress testing too.
Example - if your outgoings are £1,785 including a mortgage payment of £400 at 2%, then some lender stress test the payment to 5% (example) which would cost £600 per month taking your total outgoings to £1,985.
Stress testing is used to ensure that the mortgage would be affordable not just now, but also in the future with any potential rate increases.
Please note the above is an example, not accurate figures.

50% of some of your income being used is usually when bonuses/overtime/commission is taken into account.
What is also considered is how many dependents you have.
However, each lender is different so they may not all adopt the above.