Mortgage offer 45% less than bank's calculator?

YorkshireJames

I'd really appreciate some help.

When we put in our details onto the mortgage comparison sites and bank websites we're getting £155-160k consistently. But when we applied for Lloyds today they said instead of the £160k on the calculator they could only lend us £90k. We've got a 40% deposit and perfect credit score, so we're not risky.

We've just had an offer accepted and now we're way short. What am I missing? We just put the same numbers into Lloyds calculator again and it shows as £160k. What am I doing wrong?

Owleyes00

The online calculators do not
- take into a account a thorough consideration of your outgoings to establish affordability
- consider whether they will include certain sources of income
-check your credit score

A similar thing happened to my brother and sister in law. They had failed to account in the online calculators the fact my brother was getting a significant portion of his earnings from overtime and my SIL was taking her child benefit into account when calculating income.

Suggest you speak to a broker and then try a different lender

MaryNB

YorkshireJames said:

I'd really appreciate some help.

When we put in our details onto the mortgage comparison sites and bank websites we're getting £155-160k consistently. But when we applied for Lloyds today they said instead of the £160k on the calculator they could only lend us £90k. We've got a 40% deposit and perfect credit score, so we're not risky.

We've just had an offer accepted and now we're way short. What am I missing? We just put the same numbers into Lloyds calculator again and it shows as £160k. What am I doing wrong?

Lenders don't see your credit score. They look at your credit reports and do their own scoring which will be different to the score you see. Have you had a look at your three credit reports - Experian, Equifax and TransUnion? Make sure there's no anything unexpected on them.

ACG

Call up Lloyds and ask them. 

annarose03

We had the same problem with Nationwide and Barclays. We are hoping to include child tax credits and/or child benefits which nationwide and lloyds and barclays have all said they can include. No major outgoings a small student loan. No debt. Good credit scores when we checked a month ago. The online calculator knew it was tax credits. #baffled.

MaryNB

annarose03 said:

We had the same problem with Nationwide and Barclays. We are hoping to include child tax credits and/or child benefits which nationwide and lloyds and barclays have all said they can include. No major outgoings a small student loan. No debt. Good credit scores when we checked a month ago. The online calculator knew it was tax credits. #baffled.

Score is irrelevant. Lenders don't see it. It isn't used for loan applications. They look at the data on your report(s) and do their own internal scoring which you aren't privvy to. Check the information is correct on all three reports (Experian/Equifax/TransUnion). The data is important, not the score.  

aoleks

what calculator did you use? if it's the simple one you can find on any consumer website, they're as useful as a turd. try one of these, everything else is a waste of time:

https://intermediary.tsb.co.uk/tools-and-calculators/mortgage-affordability-calculator/

https://portal.intermediaries.hsbc.co.uk/affordabilitycalculator/affordabilitycalculatorpage.php

https://resources.barclays.co.uk/mortgage-calculators/residential-affordability

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

also, get a broker. do NOT, under any circumstances, limit yourself to "your" bank, a lender a friend has used, someone who impressed you with their advertising etc. that's not how the real life works!

[Deleted User]

Have you calculated income in a different way to the lender? 

london21

Quickest response will be to contact the lenders.

What is your income 
what is your outgoings, do you have dependants etc

YorkshireJames

Thanks everyone, our mortgage broker confirmed it's not us, we've been entering the details correctly. Its across the whole market apparently and lots of mortgage affordabilities are being cut by huge percentages. Apparently 95% of mortgages our broker had looked at for us got reduced this week.

aoleks

I'm sorry, but this doesn't add up. No, mortgage affordability wasn't reduced overnight, not even for 95% mortgages. There's something else at play here and I have the feeling your broker is not the best. As I said, check the calculators above, they'll confirm what I say.

Why are you applying with TSB, btw? would another bank work?