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Mortgage Affordability and other questions
bilalawan
Posts: 2 Newbie
Hi I have a few questions about Affordability, expenses and DTI
When testing Affordability do they count current rent i.e I'm paying 375 right now but will that count?
Also if have upfront fee's like selling a house estate agent and Mortgage broker fees i.e. they see on my bank statement I have a cost of £500 but that was to pay an online estate agent etc...
Also when they do a front end DTI is it done against net income with all expenses plus the stress test on 7% + fixed rate %
When testing Affordability do they count current rent i.e I'm paying 375 right now but will that count?
Also if have upfront fee's like selling a house estate agent and Mortgage broker fees i.e. they see on my bank statement I have a cost of £500 but that was to pay an online estate agent etc...
Also when they do a front end DTI is it done against net income with all expenses plus the stress test on 7% + fixed rate %
0
Comments
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Your current rent will end when you move so it is not a factor.
A lender is not going to worry about one off payments to a broker on your bank statement.
The nuances of affordability calculations are particular to each lender, Most will lend in the range of 4 to 4.5 times your annual pre tax income - less if you have a poor credit history, or substantive loans and credit card debt.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.2 -
cheers man, much appricatedamnblog said:Your current rent will end when you move so it is not a factor.
A lender is not going to worry about one off payments to a broker on your bank statement.
The nuances of affordability calculations are particular to each lender, Most will lend in the range of 4 to 4.5 times your annual pre tax income - less if you have a poor credit history, or substantive loans and credit card debt.0
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