Mortgage Affordability and other questions

bilalawan

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 %

amnblog

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.

bilalawan

amnblog 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.

cheers man, much appricated