Am i doing this right?

midlander81

Hi,

I am trying to calculate my debt to income ratio.

My gross monthly pay is £4550 and my total unsecured debt payments are 618.

I have done the following calculation -

618/4550 = 13.6% debt t to income ratio - Have I done this right???

amnblog

For what purpose?

midlander81

Just to get an idea of whether or not I would be eligible for a new mortgage

muhandis

Assuming you want to know how much you could potentially borrow with your current income and debt, the much easier (and I daresay more accurate) way would be to try one of the mainstream lender affordability calculators which will take into account all these and give you an approximate figure -

https://www.nationwide-intermediary.co.uk/calculators/affordability-calculator

https://www.santanderforintermediaries.co.uk/calculators-and-forms/affordability/

Of course, it doesn't mean you necessarily meet any other criteria they might have.

midlander81 wrote: »

Just to get an idea of whether or not I would be eligible for a new mortgage

Takmon

midlander81 wrote: »

Hi,

I am trying to calculate my debt to income ratio.

My gross monthly pay is £4550 and my total unsecured debt payments are 618.

I have done the following calculation -

618/4550 = 13.6% debt t to income ratio - Have I done this right???

Whenever i have seen a debit to income ratio it is usually the total amount of debt divided by your annual income.

So if your on £54600 a year and owe £25000 then your debt to income percentage is 45.8%

It's also worth pointing out a ratio and percentages are different things. So the ratio in my example would be " 25000:54600" or "0.458:1" but I've always seen it as a percentage and not a ratio.