Affordability on a remortgage

smichr

What exactly are lenders looking for in terms of affordability on a remortgage?

I'm planning to remortgage in early December, so guessing that means I need to be on my best behaviour for Sep, Oct and Nov.

So it's making sure my statements are tidy and there's money left at the end of the month - presumably?

My mortgage has gone back up to SVR and my Sky is on full rate for various reasons so my bills are a little more than i'd like, so at present my bills and mortgage work out at 53% of my income (Ex food and petrol - that's the spending thats a little too erratic at present!)

Presumably they'll look at it in that close level of detail?

exiled_red

When I took my mortgage out about 18 months ago they were wanting break down of income and expenses, this included a budget of household bills, car expenses, how much you spend on social activites (such as meals out, trips to the cinema, museums etc)

They took this along with 3 years pay slips and about 6 months worth of bank statements, to ensure we had enough money after these out goings to pay the mortgage.

smichr

Ah - six months statements might be fun. I've had the odd day generally in the last week before payday where it's dipped £10 into the red. Most of this is due to social activities/holidays etc but it'll get topped up out of savings straight away.

I imagine that'll scupper my chances

- For what it's worth, my credit score/profile isn't bad - got some transient spend on credit card but although its constantly got a balance it gets paid every month so there's no interest paid, and then there's a 0% that's got 900 left on it - I should probably clear that, right?

[Deleted User]

Are you moving providers? I've heard if you stay with current mortgage provider it's not so essential to be 'squeaky' clean. But I'm not certain. I'm sure someone else may know.

smichr

I'm with Haxifal at the moment on a HTB which i'm redeeming - their rate online is 2.74 and Nationwide will do a 1.79 which would knock £100/mo off what i pay now, and circa £50 off what it'd be for sticking with the Haxifal.

Thrugelmir

smichr wrote: »

Presumably they'll look at it in that close level of detail?

No. As it can be manipulated. Enough published statistics as to what the average person, family spends. This can be tweaked for any circumstances particular to your application. Not a precise science.

[Deleted User]

smichr wrote: »

I'm with Haxifal at the moment on a HTB which i'm redeeming - their rate online is 2.74 and Nationwide will do a 1.79 which would knock £100/mo off what i pay now, and circa £50 off what it'd be for sticking with the Haxifal.

I'm remortgaging with Nationwide. I have been ridiculously tight for months and I don't think they actually went through the outgoings, they seemed more concerned with my income. They didn't ask about sky/mobile/broadband etc only for travel costs and childcare costs.

smichr

dalo wrote: »

I'm remortgaging with Nationwide. I have been ridiculously tight for months and I don't think they actually went through the outgoings, they seemed more concerned with my income. They didn't ask about sky/mobile/broadband etc only for travel costs and childcare costs.

Are you with Nationwide already or switching to them?

nobblyned

We just completed a remortgage with Santander, didn't ask for any statements and questions on outgoings were just the very cursory ones on their application forum with no back up evidence required. LTV was low however as was income multiple.

smichr

nobblyned wrote: »

We just completed a remortgage with Santander, didn't ask for any statements and questions on outgoings were just the very cursory ones on their application forum with no back up evidence required. LTV was low however as was income multiple.

As with Dalo, were you already with Santander or switching? My LTV is down to 67% and income multiple will be just under 4.

kingstreet

Why not just complete the Nationwide affordability calculator?

Enter only what is requested, not your Sky subscription or the meal out you had a week last Tuesday.

Most lenders do not require that level of detail.

In travel, only enter the cost of travel to and from work. ONS data does the rest. Unless there's a season ticket loan or similar we use £50.

http://www.nationwide-intermediary.co.uk/calculators/aff_calc