Logic Behind Single/Joint Applications

RandomUser923759

I just looked at the basic calculator here, I put in my salary and got a result. I added a second application for my partner with theirs and got another result.

If you do both of our salaries as single applicants the total varies by 100k - anyone know the logic behind this?

Thrugelmir

Lower I assume as single applicants?

tori.k

I put it down to the snob factor, I assumed it was higher wage equalled higher education level better employability odds. When in my reality service jobs have more security due to the higher turn over of staff then lower to middle management, which are usually the first to go when a company restructures.

Lilla_D

I wouldn't get too hung up on the calculator results on this website or in fact on any website, as they will be simplified calculators, so whatever result you get can only give you a ballpark(ish) amount.

Every lender is different and dependent on your income and other circumstances, they will all come up with different results. This is what brokers do as part of their checks - find suitable lenders who will give you what you want.

However, it is normal that two single applicants will get a different amount from a joint application. After all, two single households will have two lots of outgoings, whereas a single household with two incomes will share council tax, utilities, childcare, etc.

Hope it helps

tori.k

No. It's been the opposite, single applicant gets a higher borrowing amount then two people on the same income, significantly higher.

getmore4less

mrchrisbrogan wrote: »

I just looked at the basic calculator here, I put in my salary and got a result. I added a second application for my partner with theirs and got another result.

If you do both of our salaries as single applicants the total varies by 100k - anyone know the logic behind this?

I think what you are trying to say.

£A gets £Y
£B gets £Z

£A+£B gets £Y+£Z - £100k

As a generalization as income goes up affordability(disposable) gets higher so the extra £ earned can support a bigger debt than the 1st £ earned, once passed the threshold.

you would expect 2£A to get more than 2£Y and even adding people £A+£B to get more than £Y+£Z.