Affordabiliy criteria question

schuey87

Interested to know whether affordability criteria is based on lenders looking closely at your bank statements or budgets?

We have not been very careful in the last couple of months with budget and have spent a fair bit more than we usually would with little extras DIY wise to get our house ready for market and not only that but just general day to day life not been too worried about spending small extras here and there which all add up, reason being we are getting some extra money coming in so haven't been strict about our budget because we know we can make it up off the money we have gotten.

Had loosely been looking at houses and now seen one we like. Am concerned that if lenders base decision on last few bank statements they will see lots of extras and deem that we won't be able to afford a new mortgage (we wouldn't if we lived like this!) I know realise we probably should have been more sensible in last few months if we were looking loosely at houses but too late for that. Does anyone know if this is very likely to harm our chance of getting a new mortgage? Mortgage looking at is probably around 3.7x joint salary.

marliepanda

I havent given any bank statements for mine.

They asked us to fill in a budget planner, then used standardised numbers for most of it anyway based on similar households, so the budget planner was pointless (except fir I suppose if people had car finance, loan repayments etc)

amnblog

No is the answer.

Affordability is based on regular income and outgoings, dependents, credit scoring, and potential changes.

It is not based on arbitrary spending.

Such spending, exceeding overdraft limits, will of course cause a complication.