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How much ‘spare cash’ do mortgage providers expect you to have each month?
Capri84
Posts: 173 Forumite
When looking at your ‘affordability’... what sort of ratio of cash left over each month are mortgage companies happy to see? Or what percentage are they happy to go toward servicing the mortgage?
Ive filled in an affordability questionnaire and sent it to a FA/MB... and on that they ask for a whole bunch of information including petrol costs/‘shopping’ (which is incredibly vague). Still waiting on hearing back from them early next week.
Aside from loans/credit commitments... what sort of cash are the expecting to see being ‘spare’ each month?
Ive filled in an affordability questionnaire and sent it to a FA/MB... and on that they ask for a whole bunch of information including petrol costs/‘shopping’ (which is incredibly vague). Still waiting on hearing back from them early next week.
Aside from loans/credit commitments... what sort of cash are the expecting to see being ‘spare’ each month?
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Comments
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It's not so much how much spare cash, it's whether you'd have any spare if the mortgage rate went up to ~7%.0
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@ronster1984 Lender affordability is based on a rough-and-ready calculator (different from lender to lender). Regular expenses like utility bills, groceries, etc are (for most lenders) based on ONS standard numbers and not on your individual figures, if that makes sense.Have a play around with a couple of lender affordability calculators to see very very roughly how much you may be able to potentially borrow. It'll also give you a decent idea of what are the things that may affect your max borrowing.
I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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