Mortgage borrowing questions
Discussion
Hi, we are looking to move to a bigger house in the next year and had some basic questions if someone can help please.
1. I know every lender had their own affordability criteria and some (HSBC?) are more picky than others. To get an idea of what we could afford are there any lender who are better to use than others. Our case is fairly straightforward from what I understand.
2. We have young child who will go to school oin 2 years. Currently he goes to full time mlnurarru which costs a small fortune but this will largely be reduced once he starts school. In these affordability calculations is this future reduction considered?
3. How does current outstanding mortgage get considered? If for example the calculations say we can afford 400,000 and our current mortgage is 100,000 does it effectively mean we can borrow 300,000 more.
Apologies if these are basic questions. I hear Sarnie is recommended regularly here and will get in touch with him closer to time.
Ta
1. I know every lender had their own affordability criteria and some (HSBC?) are more picky than others. To get an idea of what we could afford are there any lender who are better to use than others. Our case is fairly straightforward from what I understand.
2. We have young child who will go to school oin 2 years. Currently he goes to full time mlnurarru which costs a small fortune but this will largely be reduced once he starts school. In these affordability calculations is this future reduction considered?
3. How does current outstanding mortgage get considered? If for example the calculations say we can afford 400,000 and our current mortgage is 100,000 does it effectively mean we can borrow 300,000 more.
Apologies if these are basic questions. I hear Sarnie is recommended regularly here and will get in touch with him closer to time.
Ta
xyz123 said:
Hi, we are looking to move to a bigger house in the next year and had some basic questions if someone can help please.
1. I know every lender had their own affordability criteria and some (HSBC?) are more picky than others. To get an idea of what we could afford are there any lender who are better to use than others. Our case is fairly straightforward from what I understand.
2. We have young child who will go to school oin 2 years. Currently he goes to full time mlnurarru which costs a small fortune but this will largely be reduced once he starts school. In these affordability calculations is this future reduction considered?
3. How does current outstanding mortgage get considered? If for example the calculations say we can afford 400,000 and our current mortgage is 100,000 does it effectively mean we can borrow 300,000 more.
Apologies if these are basic questions. I hear Sarnie is recommended regularly here and will get in touch with him closer to time.
Ta
1) You are correct, some are more picky than others. It's not really possible to advise on who to apply to without knowing all of your details.1. I know every lender had their own affordability criteria and some (HSBC?) are more picky than others. To get an idea of what we could afford are there any lender who are better to use than others. Our case is fairly straightforward from what I understand.
2. We have young child who will go to school oin 2 years. Currently he goes to full time mlnurarru which costs a small fortune but this will largely be reduced once he starts school. In these affordability calculations is this future reduction considered?
3. How does current outstanding mortgage get considered? If for example the calculations say we can afford 400,000 and our current mortgage is 100,000 does it effectively mean we can borrow 300,000 more.
Apologies if these are basic questions. I hear Sarnie is recommended regularly here and will get in touch with him closer to time.
Ta
2) No. Your affordability is calculated as it stands at the point of application, not what it might be in the future.
3) The affordability calculations will include your current lending. So, if you owe £100k and the calcs say £400k lending, that means £300k extra on top of the current £100k
XJ75 said:
We recently remortgaged with Natwest and we told them about nursery fees, they asked what our childcare costs are likely to be when our children are at school too. I thought it was an odd question because like Sarnie said, presumably it's irrelevant in terms of the application.
They would ask you that in case it's more than what you've said it currently was.......Eg if you tell them it will go up, they will use the higher figure. If you tell them it will go down/stop, they will use the current figure.Gassing Station | Finance | Top of Page | What's New | My Stuff