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Mortgage Affordability Calculator

Following the Mortgage Market Review (MMR), all lenders must make sure that applicants can afford their mortgages. This calculator will give you a rough idea of affordability, but please remember that we do consider all applications manually, not with automated tools.

Use this calculator to get a quick view of whether your client is likely to qualify for the mortgage amount they want.

What income to include:

  • Car Allowance: 100%
  • Child Benefit / Tax Credits: You can include 100% of any child benefit your client receives within income, as long as it has at least five years left to run.
  • Contractors: For contract workers, enter one-twelfth of their latest self-assessment (SA302), taking into account tax and NI. Or, if applying for our Contractor mortgage product, please use daily rate x 5 x 46.
  • Overtime: Regular - 50%
  • Self Employed: Enter one-twelfth of their latest self-assessment (SA302), taking into account tax & NI contributions as monthly income.

A few useful tips:

  • Use current figures for expenditure, not future forecasts.
  • You must include all committed and essential outgoings. If there aren't boxes for the types of outgoings you want to include, please group them together under one of the headings available.
  • As a minimum we use average level of spend, based on data from the Office of National Statistics (ONS). If your clients outgoings exceed this sum, please enter these figures within the 'confirmed expenditure' column.
  • For the categories of Travel & Transport and Housing, Fuel, Power & Communications: if your clients can demonstrate that they spend less than the ONS figure, you can enter your own figure. Tick the 'verified' box alongside your data entry, as long as you can show evidence (such as bank statements) to support your figure
  • Greyed-out figures for outgoings mean we are using an average based on data from the Office of National Statistics (ONS). If you want to use a lower amount, you can enter your own figure. Tick the 'verified' box if you can show evidence (such as bank statements) to support your figure.
 
This calculator is an indicative tool. It does not constitute a mortgage offer or guarantee that we will be able to offer your client a mortgage.

Your client's home may be repossessed if they do not keep up repayments on their mortgage.

ONS data shown as at December 2016


Please note - as a guide we will not generally exceed 4.5 x income. If you have an application over this, we will consider on a case by case basis. Please call the Business Development Team on 0330 123 1073 option 1 to discuss any such cases.

Affordability Calculator

Loan Details  

 

 

 

 

Household Composition  

 

Income Details  

Gross Annual Income  

  Net Monthly Income  

Gross Annual Income  

  Net Monthly Income  

Expenditure Details - monthly total amounts (greyed out areas indicate ONS average data)  

  Confirmed Expenditure Verified

   

   

   

 

 

 

Are you ticking the VERIFIED option box for Expenditure?
Please be aware that whilst we can take an individual view on your clients circumstances, so we do not have to rely upon ONS data, we will need to fully assess their financial position using their Bank Statements to verify their declared expenditure.

Other Mortgage Details Repaying

  Balance
Outstanding
Rental
Income
Monthly
Payments
 

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Loan & Hire Purchase Agreements Repaying

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Outstanding
Monthly
Payments
 

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Credit / Store Cards Repaying

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Outstanding
Monthly
Payments
 

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  Free Disposable
Income
Monthly
Payment