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Affordability calculators

Hi,

Do the online mortgage affordability calculators reflect the lending criteria of the bank/building society in terms of debt to income etc.

We are considering completing a DIP for Halifax. We want to borrow 175k over 25 years to purchase a property in the region of 300K. We have 50k of unsecured debt consting £1250 per month.

The Halifax affordability calculator suggests that we can borrow 250K which is way more than we want/need. Could we still be turned down based on affordability or are these calculators a good indication. We have no adverse credit so this shouldn't be an issue. Without the 50K debt we would be able to borrow 361K apparently!!!!

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Calculators are only ever a guide. They cannot factor in all the variables in terms of lending criteria. Commercially sensitive aspects won't be published in public view. Likewise criteria can change very quickly depending on the lenders desire to lend and what the target market is at the time.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Work out what you think you can afford first.

    Critical to that will be the circumstances around the debt.
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