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Loan Affordability Calcs?
tightasagnats
Posts: 391 Forumite
in Loans
Hello,
Does anyone know roughly how loan affordability calculations are made? Are there formulas?
I'm hoping to borrow funds for home improvements after moving house. Have raised max I can on mortgage, will have enough left salary wise to repay a loan as far as my own budget goes, but be interested to know what lenders do to work this out. Be good to get a ballpark of what I might expect to borrow, with x amount left after all bills/outgoings etc.
As I'm in the process of buying I don't want to apply yet so my credit file stays nice and stable. Also, would you borrow on credit card first then loan, or loan then cards in terms of likely approval?
I'm super careful with my funds, so should be a good bet as far as lenders go. I imagine some are more risk averse than others.
Does anyone know roughly how loan affordability calculations are made? Are there formulas?
I'm hoping to borrow funds for home improvements after moving house. Have raised max I can on mortgage, will have enough left salary wise to repay a loan as far as my own budget goes, but be interested to know what lenders do to work this out. Be good to get a ballpark of what I might expect to borrow, with x amount left after all bills/outgoings etc.
As I'm in the process of buying I don't want to apply yet so my credit file stays nice and stable. Also, would you borrow on credit card first then loan, or loan then cards in terms of likely approval?
I'm super careful with my funds, so should be a good bet as far as lenders go. I imagine some are more risk averse than others.
0
Comments
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Im not sure the formula is known.
Your doing everything right though, don't apply for a loan before you complete.
If you google loan affordibility calculator uk theres a link for santander, well its for intermediaries.0 -
If you can pay them off before the 0% rate ends, then it's worth considering purchase and/or balance transfer credit cards. They're usually much cheaper than even a cheap rate loan.
Don't apply before you complete though.[FONT="][FONT="] Fighting the biggest battle of my life.
Started 30th January 2018.
[/FONT][/FONT]0 -
If you can wait a few months save every month to prove you have money left over?Censorship Reigns Supreme in Troll City...0
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Thanks folks.0
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