Mortgage affordability

TheDebtinator

HI all,

It has been a while since I had a mortgage, and things have changed a bit. Back then (2003) me and my then fianc!e had around 4-5 times our annual wage as a mortgage offer.

Things are now different in 2016 and a lot more is taking into account. My current fianc!e and I earn over £60k between us (over £70k if our overtime and regular on call supplements were taken into consideration) and would be looking at a mortgage of around £270k, with a deposit of just over 10% (houses where I live start at around £300k for something half decent). Back in 2003 this wouldnt have been an issue, but now things like shopping, going out, etc,etc are taken into account. Having just looked at an affordability calculator, it is hit and miss as to what we could potentially get offered, despite us having over £2k available after bills etc are paid (according to the calculator).

My question is, is it a hard and fast rule, or can it be relaxed? As we will be going through a broker hopefully they would be able to get us the best deal available at the time.

Thanks.

MortgageMamma

You are best having this conversation with a broker as a full affordability assessment needs to be done, then you will know the maximum you can borrow. I don't find most lenders online affordability calculators particularly useful to be honest as they can still get picky once it gets to an underwriter.


A good knowledgeable broker could give you the answers you need, but you need to go through a financial fact finding exercise first.

TheDebtinator

I thought that may be the case. While I understand and appreciate that it has been brought in for a reason, it is equally frustrating for those who can afford the mortgage repayments easily, but get turned down despite having a lot of spare money available when the bills are paid.

Thanks for your reply

MortgageMamma

I know, its not great for us broker either. I'm hoping for a relaxation on a few rules once we have fully exited the EU.

TheDebtinator

I expect that it has lost some business for you and others since being introduced. It is one of those necessary evils in many ways, stop being borrowing beyond their means, stop repossessions etc etc, but still, not everyone is like that.