Credit Club - Disposable Income

jake838

Hi all,

For the last 6 months i have been actively saving my butt off for a mortgage deposit. every month i transfer £200 into my help to buy isa (until LISA opens) and the remaining of my free cash i transfer into a high interest savings account.

I joined the Credit Club a few month ago (amazing tool) and under the Affordability score it has "mortgages coming soon - in the meantime the key measures for mortgages is your disposable income."

My Disposable income score is "fair - not down to the last pound but dont have loads of free cash"

Does transferring all of my free cash to a savings account affect this rating? (as i know savings account arent present on your credit report).

Thanks all :money:

rtho782

The disposable income bit is pretty !!!!!! to be honest. It thinks we're completely broke, on a joint salary of ~£75k with no significant debts apart from mortgage.

I'd ignore it.

MSE_Dan_L

jake838 wrote: »

I joined the Credit Club a few month ago (amazing tool) and under the Affordability score it has "mortgages coming soon - in the meantime the key measures for mortgages is your disposable income."

Hi Jake838

The affordability score doesn't take into account your savings balances, so saving hard out of your income won't affect your scores here.

It is worth noting that we do mention in the disposable income section above, that this score doesn't really apply to those interested in taking out a mortgage. This is because unlike cards and loans, when taking out a mortgage you're asked to prove your expenses using your bank statements.

I hope this helps.

MSE_Dan_L

rtho782 wrote: »

The disposable income bit is pretty !!!!!! to be honest. It thinks we're completely broke, on a joint salary of ~£75k with no significant debts apart from mortgage.

Hi rtho782

The affordability scores are calculated based on three factors:
- the information you've provided to us
- the data from your report
- info from the Office of National Statistics

If mimics the checks undertaken by lenders, so do check that you've not made a mistake with your salary/mortgage information (we've had a few people accidentally input their monthly salary as annual).

If that all looks good, it is also worth checking your full credit report and ensuring there aren't any errors being reported.

Chappaz

jake838 wrote: »

Hi all,

For the last 6 months i have been actively saving my butt off for a mortgage deposit. every month i transfer £200 into my help to buy isa (until LISA opens) and the remaining of my free cash i transfer into a high interest savings account.

I joined the Credit Club a few month ago (amazing tool) and under the Affordability score it has "mortgages coming soon - in the meantime the key measures for mortgages is your disposable income."

My Disposable income score is "fair - not down to the last pound but dont have loads of free cash"

Does transferring all of my free cash to a savings account affect this rating? (as i know savings account arent present on your credit report).

Thanks all :money:

Lenders don't see the rating MSE gives you. It's not important. It's just a very rough guide based on the limited information the club has about you.

In fact, no credit reference agencies know how much income or disposable income you have. It's not recorded on your file and lenders can't see that. All they have to go on is what kind of credit you have, how much debt you have, and how much you're paying out for them. That's about it.

As mentioned above, when it comes time to actually apply for a loan, the lender is going to investigate with a lot more accuracy to deem how much disposable income you have available (tallying up incomes, bills, debt payments and bank statement activity etc).

That's all you should be concerned about.