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  • FIRST POST
    • cammo12
    • By cammo12 6th Dec 17, 10:02 PM
    • 77Posts
    • 16Thanks
    cammo12
    Affordability - Monthly Spend on Holidays
    • #1
    • 6th Dec 17, 10:02 PM
    Affordability - Monthly Spend on Holidays 6th Dec 17 at 10:02 PM
    Applied for a Santander mortgage today via a broker. In the affordability section (monthly spend on food etc) the broker said that Santander use national avergaes to fill this in. Food was £700, Bills £300. But the holiday spend was £0. I just accepted this and didn't think twice and submitted. Is it bad that this is £0 even though we go on holiday?
    Last edited by cammo12; 06-12-2017 at 10:31 PM.
Page 1
    • csgohan4
    • By csgohan4 7th Dec 17, 7:49 AM
    • 4,540 Posts
    • 2,835 Thanks
    csgohan4
    • #2
    • 7th Dec 17, 7:49 AM
    • #2
    • 7th Dec 17, 7:49 AM
    you go on holiday every month, do you even need a mortgage?
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • cammo12
    • By cammo12 7th Dec 17, 9:04 AM
    • 77 Posts
    • 16 Thanks
    cammo12
    • #3
    • 7th Dec 17, 9:04 AM
    • #3
    • 7th Dec 17, 9:04 AM
    Haha, no, the requirement is average monthly spend. So if you take 1 holiday a year at a cost of 2000 then the average monthly spend is 166.
    • Neutrinno
    • By Neutrinno 7th Dec 17, 9:31 AM
    • 188 Posts
    • 86 Thanks
    Neutrinno
    • #4
    • 7th Dec 17, 9:31 AM
    • #4
    • 7th Dec 17, 9:31 AM
    you go on holiday every month, do you even need a mortgage?
    Originally posted by csgohan4
    It needs a monthly average; annual divided by 12. £0 implies he will never have a holiday going forward.
    I am a Mortgage Broker.

    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.
    • cammo12
    • By cammo12 7th Dec 17, 2:23 PM
    • 77 Posts
    • 16 Thanks
    cammo12
    • #5
    • 7th Dec 17, 2:23 PM
    • #5
    • 7th Dec 17, 2:23 PM
    It needs a monthly average; annual divided by 12. £0 implies he will never have a holiday going forward.
    Originally posted by Neutrinno
    So from your point of view as a broker, do you think this will be an issue? We have more than enough leeway in our monthly budget for this not to be a problem. It is just about whether or not they think it it is bad that we put £0.
    • cammo12
    • By cammo12 7th Dec 17, 2:25 PM
    • 77 Posts
    • 16 Thanks
    cammo12
    • #6
    • 7th Dec 17, 2:25 PM
    • #6
    • 7th Dec 17, 2:25 PM
    So from your point of view as a broker, do you think this will be an issue? We have more than enough leeway in our monthly budget for this not to be a problem. It is just about whether or not they think it it is bad that we put £0.
    Originally posted by cammo12
    Another point to add is that going forward we don't plant to go on holiday for the next few years - this is because our money will be going into the house as it requires a bit of work. So perhaps this is OK as it is going forward?
    • clairebeth
    • By clairebeth 7th Dec 17, 9:04 PM
    • 160 Posts
    • 69 Thanks
    clairebeth
    • #7
    • 7th Dec 17, 9:04 PM
    • #7
    • 7th Dec 17, 9:04 PM
    I'm still stuck on the fact that the national average spend on food is £700 a month!
    • cammo12
    • By cammo12 7th Dec 17, 9:55 PM
    • 77 Posts
    • 16 Thanks
    cammo12
    • #8
    • 7th Dec 17, 9:55 PM
    • #8
    • 7th Dec 17, 9:55 PM
    I'm still stuck on the fact that the national average spend on food is £700 a month!
    Originally posted by clairebeth
    The £700 was actually for "food and clothes". Also I'm in the South East, and perhaps this spend varies regionally.
    • Lokolo
    • By Lokolo 8th Dec 17, 11:07 AM
    • 19,991 Posts
    • 15,120 Thanks
    Lokolo
    • #9
    • 8th Dec 17, 11:07 AM
    • #9
    • 8th Dec 17, 11:07 AM
    I'd expect £700 for food and clothes for a family of 5. Not for an average family. The average household is 2.3 people. I would say, and being very generous, this is about £400 a month.
    • badmemory
    • By badmemory 8th Dec 17, 1:00 PM
    • 1,706 Posts
    • 2,303 Thanks
    badmemory
    The employees at Santander obviously need to spend some time on this site re housekeeping type costs but also need a reality check regarding bills!
    • spadoosh
    • By spadoosh 8th Dec 17, 1:19 PM
    • 5,190 Posts
    • 6,994 Thanks
    spadoosh
    OP i doubt it will cause issues.

    As long as you can afford to pay the mortgage i doubt santander care how many or the cost of holidays you take.

    Ultimately you need a fair representation of your finances. If youre not planning any holidays for a few years putting £0 in the holiday column is fair.
    Don't be angry!
    • Mnd
    • By Mnd 14th Dec 17, 6:02 PM
    • 545 Posts
    • 644 Thanks
    Mnd
    700 on food! 250 for us 2..and we do have several holidays..in fact we probably spend more on holidays than we do food
    • kingstreet
    • By kingstreet 14th Dec 17, 9:09 PM
    • 33,552 Posts
    • 18,192 Thanks
    kingstreet
    As a broker, we have a choice in the Santander affordability calculator.

    We can choose to input nothing and accept the ONS figures for the type of household; or enter everything and get a tailored solution.

    FWIW choosing the latter rarely results in a maximum loan lower than the former.

    On the odd occasion I've had a bit of fun with the data entry seeing how much I can enter in each box before the output is even affected.

    Typically, pre-budget planner, I'll enter;-

    Food drink & clothing £250
    Household goods £50
    Council tax & utilities £325
    Travel £150
    Entertainment £100
    Holidays £100.
    Last edited by kingstreet; 14-12-2017 at 9:12 PM.
    I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.
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