affordability calculator

dk5294

Anyone know why you get different amounts from different affordability calculators and I don't mean a few pounds, I mean thousands.

For instance put identical income into 3 different calculators (halifax/natwest/skiptons) Halifax comes out with just shy of £25k, natwest £41k and skiptons £52k with potential to lend more dependant on credit check etc (which the other two don't say although I imagine it will be there in small print.)

Do different lenders price affordability differently? For instance Halifax assumes the average single person spends X amount a year on general living and deducts this whereas Skiptons assumes this to be much lower?

ACG

Natwest will not lend more than their calculator states.

Lenders have their own affordability calculations, most lenders use ONS figures for affordability purposes. As an example, I have never seen Skiptons calculator offer more than natwests. The calculations are complicated and it is not a case of we will lend 4x income minus any commitments.

But £10-20k difference between the lowest lending and highest is not uncommon. Thats why when people come on here and say they can not lend enough and it is "only" £10k shy, I tend to say finding a new lender could enable them to complete.

dk5294

My mistake nationwide, not natwest. Natwest offer more than Skiptons in this case. I think some calculators also assume 2 adults and a sole application equates an adult dependant, whereas others ask if this is the case?

I used to wonder why brokers fees were in the hundreds to 'fill in an application form' until recently and jesus the leg work you need to put in! I completely understand now. After reading a fair few lenders criteria I can see why the whole thing is a minefield especially in today's climate where you are lucky to have someone who has no real credit, never missed one payment in their life and have an expenditure that basically points to a wilding!

ACG

It's like anything, we do it day in day out so we know what to look for. I was surprised when you initially said skipton would lend more than natwest...but that only comes with experience.

amnblog

These calculators are actually quite complex in they way they function, and also get adjusted from time to time.

Each Lender has their own peculiarities on the way they handle certain incomes and outgoings.

With experience you can start to see which are more likely to be more generous in what circumstance.

You have seen how baffling it is to the layman.

dk5294

I definitely learnt a few things!!

I applied to LBS without a broker (CW told us our situation was a no go if halifax were out) they done a DIP referral, carried out a hard search and came back advising they would lend the full amount pending additional requirements. I approached a broker for assistance for putting in the full application but he looked at the paperwork and said everything looked ok but they wouldn't get involved now, so now I'm really scared! I don't know how you aren't all grey or bald doing this every day!

amnblog

I am grey and bald!

sultanabran

dk5294 wrote: »

I definitely learnt a few things!!

I applied to LBS without a broker (CW told us our situation was a no go if halifax were out) they done a DIP referral, carried out a hard search and came back advising they would lend the full amount pending additional requirements. I approached a broker for assistance for putting in the full application but he looked at the paperwork and said everything looked ok but they wouldn't get involved now, so now I'm really scared! I don't know how you aren't all grey or bald doing this every day!

Because they don't have an emotional attachment to it. Just look at the number of threads on here with folk stressing out about if they are going to be accepted for a mortgage.

Whilst I'm not trying to downplay the skill set required to be a broker, it's their job. Somethings may stress them about it but when you as an individual apply for a mortgage, for a lot of people, their life is on hold until they get a decision.

Speaking from experience as that's exactly where I am just now!

dk5294

Sultanabran I am the same and I don't even have a broker to bombard and ask "is this positive?" Literally read the criteria, called an advisor and asked, they said sounds OK, applied for dip and now it's execution only because I decided to see before I involved a broker 😂 if it all goes wrong at least I don't have broker fees to pay again.

sultanabran

dk5294 wrote: »

Sultanabran I am the same and I don't even have a broker to bombard and ask "is this positive?" Literally read the criteria, called an advisor and asked, they said sounds OK, applied for dip and now it's execution only because I decided to see before I involved a broker 😂 if it all goes wrong at least I don't have broker fees to pay again.

Good luck :beer: