Budget

atrebor

Hi - need help.

We are currently applying for a mortgage through scottish widows and they have asked us to provide them with a budget. I just want to know what sort of thing they are looking for us. We've done a budget and included everything we can think of but that doesn't leave alot left at the end of the month - but it does include things like savings and repayment mortgage rather than interest only. Will they refuse us a mortgage if they think we're sailing too close to the wire?? should I shave the figures a bit to show a larger surpless at the end of each month? some of my estimates have been pessimistic/ over estimates but thats just the way i work. aaaahh stressed.
with thanks
Mrs B

poppy10_2

atrebor wrote: »

Will they refuse us a mortgage if they think we're sailing too close to the wire??

Yes, and they should do - it means you can't afford the mortgage.

should I shave the figures a bit to show a larger surpless at the end of each month?

What would be the advantage of this? It would mean you get the mortgage, sure. But then you will be struggling to meet the payments and will eventually get repossessed. Why would you want to go down this road?

atrebor

Poppy I think you misunderstand me a bit, I can afford teh mortgage and even though we are going to a fixed rate, we'd be able to afford it for a couple of percent higher if we had to in a couple of years. - it was a tolerance I calculated before applying. I am just wanting to know what sort of things they are looking for. I have calculated all costs for the new house based on best guess and fact - council tax i know but gas I don't so I have doubled what we now spend and used that figure. Not very scientific but it reasured me that we would be able to afford it, and hopefully when the costs come in as less we will be able to live a little better. We have no other debts having worked hard to clear them, and have budgeted more than realistic amounts for cars and house keeping and included provisions for training courses (nhs threatening to withdraw funding) dentists and eye care and every damn think we can think of. We're frugal people and would not apply for a mortgage if we didn't think we could afford it.
I want' to know what they look for as in, is it whats left at the end of the month as based on the budget it looks like about £10 (after paying a wedge into savings) but if I took thinks like the savings out, and put the utilities down to more realistic measures it would leave alot more. I guess what I've done is where there is an unknown cost I've very overestimated it so I won't be suprised by it but want to know if I can be penalised for this by having them refuse the mortgage.


I know it all sounds abit stupid but past experience has made me very prudent when it comes to budgeting
thanks

atrebor

Just found info on another thread about debt to income ratios and have just done a calculation on an online thingy and have come in at 30% which I am happy with as most ifas seem to like anything below 40% so fingers crossed. What is it about buying this house this time that has turned me - seasoned house purchaser / seller and normally level headed calm person into a bag of neurosis?? I think I'm letting all the media stories get to me. AAAhhh. have promised not to let myself read the newspapers tomorrow.

atrebor

Yeahh scottish widows approved my over cautous budget today! no just have the survey to fret about........