FTB Mortgage Application - income & expenditure

JamesR22

Good Evening All,

I'm currently compiling all the necessary documents for my first mortgage application (AIP agreed already) and one of the items is a detailed monthly income and expenditure list.

I'm looking at around a £350 surplus (per month) after absolutely everything deducted, but I've no idea whether this is seen as affordable?

Just nervous to submit only to be rejected on this.

Anyone got any thoughts?

Thanks,

James

Thrugelmir

JamesR22 wrote: »

I'm looking at around a £350 surplus (per month) after absolutely everything deducted, but I've no idea whether this is seen as affordable?

Depends as to what you regard as "everything".

glosoli

It depends on the size of mortgage you are talking about really.

If you only have £350 left over and you are applying for a £250,000 mortgage then questions will be asked as to whether it's affordable or not into the longer term, or if your mortgage is only £75,000 it might be fine.

JamesR22

Thanks for the replies.

Everything, as in all my regular outgoings, it's very thorough:

Mortgage payments, rent (SO), maintenance, council tax, utility bills, tv license, car hp, car insurance, car tax, fuel, food and household, life insurance, buildings and contents insurance, mobile, dental/medical, 'eating out', alcohol etc...

My AIP is for £95,400.

Thanks

glosoli

Have you factored in both the new mortgage payment and your existing rent payment? If so remove the rent payment and all other expenditures relating to your existing property as they won't matter if you wont be living there

Lrimas

Banks can calculate affordability for up to 7%.

So if you have a mortgage of £95400 over 30 years it is £635 per month (in total)

Can you afford that (is your current rent+left over money enough?)

Shorter mortgage terms will be more off course, but there are loads of calculators online that can show you how much it will be.