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  • FIRST POST
    • Dace2020
    • By Dace2020 14th Jan 20, 3:07 PM
    • 5Posts
    • 0Thanks
    Dace2020
    Outgoings/Spending
    • #1
    • 14th Jan 20, 3:07 PM
    Outgoings/Spending 14th Jan 20 at 3:07 PM
    I am trying to get things organised to apply for a mortgage by the end of the year.
    Spending is something I am absolutely horrendous at! I know I need to cut a lot especially eating out. I have two holidays booked this year and am now slightly paranoid this may effect things...
    one in April one in Sept (hopefully mortgage application will be in Dec/Jan

    I cant seem to find anything online that says a percentage of what you should spend, how far the bank statements go back etc.

    I spoke with another mortgage broker a few days ago and was told to come back when ready (2nd time I have been told this) so I don't actually know who I approach to advise us on everything before the application.

    Thanks
Page 1
    • foxy-stoat
    • By foxy-stoat 14th Jan 20, 3:15 PM
    • 5,696 Posts
    • 3,533 Thanks
    foxy-stoat
    • #2
    • 14th Jan 20, 3:15 PM
    • #2
    • 14th Jan 20, 3:15 PM
    You can spend what you like, theres no calculators online that tell you how much of your salary your allowed to spend on holidays/mortgages.

    I use an excel spreadsheet and budget accordingly and try not to borrow month to month.
    • jimbo2108
    • By jimbo2108 14th Jan 20, 3:15 PM
    • 49 Posts
    • 20 Thanks
    jimbo2108
    • #3
    • 14th Jan 20, 3:15 PM
    • #3
    • 14th Jan 20, 3:15 PM
    Hi,
    Bank statements generally go back 3months (I didnt have to supply any) they just ask for income and also general outgoings. they generally ask for 3 months wage slips too
    • Dace2020
    • By Dace2020 14th Jan 20, 3:57 PM
    • 5 Posts
    • 0 Thanks
    Dace2020
    • #4
    • 14th Jan 20, 3:57 PM
    • #4
    • 14th Jan 20, 3:57 PM
    Oh wow I thought it was something they would look at too see how much we could afford! That's peace of mind for sure.

    Thanks guys
    • foxy-stoat
    • By foxy-stoat 14th Jan 20, 4:22 PM
    • 5,696 Posts
    • 3,533 Thanks
    foxy-stoat
    • #5
    • 14th Jan 20, 4:22 PM
    • #5
    • 14th Jan 20, 4:22 PM
    Numbers start at 4 to 5 times joint salary then they deduct from there, debts, planned spending over and above normal allowances for bills, utilities, shopping etc.

    If you spend say 5,000 a year on holidays they will make a deduction to what they are willing to lend.
    • LRmortgage
    • By LRmortgage 14th Jan 20, 7:13 PM
    • 370 Posts
    • 168 Thanks
    LRmortgage
    • #6
    • 14th Jan 20, 7:13 PM
    • #6
    • 14th Jan 20, 7:13 PM
    Most lenders don’t care what you spend on holidays, luxury items etc. A lot of lenders don’t even ask for bank statements these days.

    Generally your expenses will be calculated using statistics from the Office of National Statistics and then further adjustments for any committed expenditure you have such as loans, child care costs, credit card balances etc.

    Don’t overthink this. Live within your means, all should be ok.
    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.
    • ACG
    • By ACG 14th Jan 20, 7:42 PM
    • 19,866 Posts
    • 11,397 Thanks
    ACG
    • #7
    • 14th Jan 20, 7:42 PM
    • #7
    • 14th Jan 20, 7:42 PM
    As above, most lenders use ONS figures for spending on most things (food, bills etc). The best way to think about it is your excess money is yours to spend as you please in the main.

    Some lenders will go through bank statements line by line but those are a minority. I think you are over thinking things a little.

    On a side note, I would find a different broker. If the broker can not invest 5-10 minutes to give you some guidance and point you in the direction to help you, they do not deserve your business.
    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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