Debt to income ratio mortgage

BARLEYFIELDS

Hi

Debt to income ratio is an issue in my mortgage application. One issue will resolve itself when my credit report updates this month. However One very specific thing is I have a loan which had monthly payments of £300 over 84 months. I paid a chunk off last year and so the monthly payments dropped to £97 per month. On my Experian report however whilst the payments are showing up to date, it is still showing as 84 payments of 300. When the mortgage company is calculating my debt to income ratio (not loan to value) will they take into account the £300 or the £97? I presume if the 300 I will need to get the loan company to update the file?

Thanks

D3xt3r5L4b

It’s showing the original loan agreement. Whether it should be updated to show the new payment I don’t know 

MinuteNoodles

BARLEYFIELDS said:

When the mortgage company is calculating my debt to income ratio (not loan to value) will they take into account the £300 or the £97? I presume if the 300 I will need to get the loan company to update the file?

Neither. They'll look at the outstanding balance. It is your overall debt in pounds, shillings and pence they look at, not what the individual monthly repayments are.

A_Random_Man

So a lender WILL factor the monthly repayment into a affordability assessment (there are very few applications where they don't) however as the above poster mentioned they will look at your overall debt compared with the mortgage you want. Unfortunately there is no way to know for certain other than doing an application, AIP or DIPS can give you an indication, but the scoring system is secret