Any one applied for a mortgage recently?

[Emeye]

I'm about to apply for a mortgage In principle agreement but I can't get to the bottom of which outgoings they will ask me about.

Various online affordability calculators appear to ask about child care, loans, credit cards and travel expenses etc, but then they ask about "Any you think we need to know about"....

I want to know so that I am sure that I am getting an accurate result from the online calculators.

I asked Nationwide through their online chat and it wasn't any clearer, other than they don't need to know about utility bills and council tax.

Thing is, research in some places suggest they will want to know much more details including takeaway, phone bills, clothes etc

Could Nationwide want less as I am already a customer?

Cheers.

Edited by Emeye on Friday 30th January 22:32

[MagicalTrevor]

I'd highly recommend you forget about your bank and speak to the resident mortgage advisor 'Sarnie'. He's a smashing bloke and will sort you out with a better deal than the high street

[eliot]

They want all regular outgoings/commitments including phones,internet, sky etc

[kiethton]

MagicalTrevor said:

I'd highly recommend you forget about your bank and speak to the resident mortgage advisor 'Sarnie'. He's a smashing bloke and will sort you out with a better deal than the high street

This, Sarnie really helped me out

[Snozzwangler]

kiethton said:

MagicalTrevor said:

I'd highly recommend you forget about your bank and speak to the resident mortgage advisor 'Sarnie'. He's a smashing bloke and will sort you out with a better deal than the high street

This, Sarnie really helped me out

After some discussion prior to a planned 2015 house purchase, he seems very good!

(He's not earned a penny from us yet either!)

[Sarnie]

Emeye said:

I'm about to apply for a mortgage In principle agreement but I can't get to the bottom of which outgoings they will ask me about.

Various online affordability calculators appear to ask about child care, loans, credit cards and travel expenses etc, but then they ask about "Any you think we need to know about"....

I want to know so that I am sure that I am getting an accurate result from the online calculators.

I asked Nationwide through their online chat and it wasn't any clearer, other than they don't need to know about utility bills and council tax.

Thing is, research in some places suggest they will want to know much more details including takeaway, phone bills, clothes etc

Could Nationwide want less as I am already a customer?

Cheers.

Edited by Emeye on Friday 30th January 22:32

Google MMR - It's the Mortgage Market Review that came in to effect at the end of April 2014 and places a huge onus on lenders to assess affordability in detail and then lend on that basis, rather than simply old fashioned income multiples. The income multiples are still in play by lenders to give initial maximum gross lending figures but then will apply affordability data to arrive at a net lending figure.

What you will find is that most lender use UK National statistics and apply averages to your details so if there is a man and wife with two kids, they will revert to national averages and state that that family will spend X amount on food, petrol, utility bills etc.

Lenders never used to specifically ask those questions (some still don't) but by asking those questions now, they are looking to unearth any expenses that are outside of the normal range of average figures.

I had a recent client who declared zero credit commitments, had fairly high income and looked a straightforward application. Until asked if he had any childcare/schooling costs where he disclosed £2.5k per MONTH private schooling fees for his two boys.........needless to say, it had a massive impact on his lending capacity which pre-MMR wouldn't have been something that the lender would have even asked about......

I suppose it's all about sensible lending but it is resulting in a lot of people I speak to, telling us that their current lender won't even lend them enough to cover the mortgage they already have, under the new MMR assessments!

In the main, MMR doesn't massively impact most people, but those it does, seem to have been hit fairly hard!

With regards to things like takeaways etc, they might ask the question, and if you gave normal acceptable figures it's not going to cause you issues, but if you disclose that you and your family of five kids spend £100 per week at Domino's expect that to be an issue!

[Emeye]

Thanks to the detailed reply. I did Google mmr and that's when I started to see lots of different answers!

I did find that I could access the tools that Nationwide provide for financial advisors, so I'm hoping this one is giving me an accurate answer! http://www.nationwide-intermediary.co.uk/calculato...

In the past I have sorted my mortgage myself and done alright, but that was back in the day of the old rules when I didn't' have three kids etc

All I need now is a reasonable accurate idea of what I can borrow so we can decide whether moving house is viable! I am sure the new system may involve some gotchas for me!

Edited by Emeye on Saturday 31st January 19:02

[Anonamoose]

We applied recently over the phone with FirstDirect. It took 2.5hrs to answer all questions about us and outgoings, they wanted to know everything. Much more in depth than when we last applied 8yrs ago.

I'd expect to disclose all regular spending, not just debt payments or cars etc.

[Emeye]

Sarnie, you have mail.

[Patch1875]

Sarnie, I noticed the nationwide link above asks for your outgoings at the time you take the mortgage. Is that the norm? We're looking to move later in the year but reckon when we start looking and start finding out what we can borrow we will still have a bit debt but will be cleared before we actually take it out.