Online calculator showing me mortgages that are more than I can borrow?

Fawun

I've been looking at some rough calculations online for mortgages, using the value of the house we are looking at, deposit and my fianc!s income as I don't have a good enough credit rating and we would get a better rate on his name.

Halifax for example have on one side telling me we could borrow £114K (not near the £164K we would actually want to borrow) but then shows me "four products available to you" for the £164K we would like?!

If I remove the deposit these drop off and tell me they are "unaffordable".

Is this an error or worth making an enquiry on?

HappyMJ

Fawun wrote: »

I've been looking at some rough calculations online for mortgages, using the value of the house we are looking at, deposit and my fianc!s income as I don't have a good enough credit rating and we would get a better rate on his name.

Halifax for example have on one side telling me we could borrow £114K (not near the £164K we would actually want to borrow) but then shows me "four products available to you" for the £164K we would like?!

If I remove the deposit these drop off and tell me they are "unaffordable".

Is this an error or worth making an enquiry on?

You need to have a deposit to qualify for the mortgages.

A 95% mortgage of £114k may not be affordable at all but a 60% LVR mortgage of the same amount of £114k will be affordable due the lower APR that applies to the mortgage.

ACG

Are they 5 year fixed rates?

Fawun

ACG wrote: »

Are they 5 year fixed rates?

It shows me 4 product options based on borrowing £164K and a deposit of £10K (could go to £12K but stuck with £10 to keep maths easy!)

On there it does include a 5 year fixed and a 2 year fixed.

ACG

the 5 year rate I could potentially understand. If you fix for 5 years or more, lenders can do the affordability assessments on those rates rather than their standard rate (typically around 7-8%) although that is down to the lenders to decide whether to do that or not.

The fact there is a 2 year fixed rate makes me think this is probably an error more than anything else.

Fawun

ACG wrote: »

the 5 year rate I could potentially understand. If you fix for 5 years or more, lenders can do the affordability assessments on those rates rather than their standard rate (typically around 7-8%) although that is down to the lenders to decide whether to do that or not.

The fact there is a 2 year fixed rate makes me think this is probably an error more than anything else.

Thank-you,

It's showing me 2 versions of each, one without fees and one with fees and it appears to be for £164K that we would like.

With that being said we have an outstanding help to buy application we should hear back from this week in my fiances name also so hopefully the amount we need from a lender will drop off a bit!

Fawun

ACG wrote: »

the 5 year rate I could potentially understand. If you fix for 5 years or more, lenders can do the affordability assessments on those rates rather than their standard rate (typically around 7-8%) although that is down to the lenders to decide whether to do that or not.

The fact there is a 2 year fixed rate makes me think this is probably an error more than anything else.

Hypothetically is is possible however that Halifax would be willing to stump up the amount we would like to borrow (£165K) if we went with a 5 year fixed?

The amount payable per month is showing up at approx. £650-£700 which is within our affordability even in the one name.

joeyboy

It could just be flaws in the online calculator, I know a couple of banks who have them have small print on the page saying the calculators are a guide and may present mortgages you would not eligible for/would not afford.