Mortgage budget questions

[Babypythagorus]

These didn't exist last time I got a mortgage! What are they?!

Am I best to be cautious and say the top end of what things might be, or the bottom (so I sound like I have more disposable income)?

thanks I'm advance, wise ones :)

[Babypythagorus]

In. Darned phone.

[SheHasAWildHeart]

They'll want to see your bank statements - I think at least six months worth. At least Natwest did. Then they'll look at regular outgoings to see what your average monthly spend is. I read on MSE that in those six months make sure your account is never overdrawn that you spend sensibly, have a shiny credit record etc.

[etoiledemer]

Yikes. I went into unauthorised overdraft by about a tenner a couple of months ago. Do you think this will this be a problem? My credit score is 5/5 according to Noddle and I don't have any other bad credit history apart from this glitch.

We're "only" borrowing 2.5 times joint salary and 45% of the LTV.

[MrsPJones]

only 2.5 times joint salary and 45% LTV you will be fine. Just say what you normally spend, if you say amounts that re too low they may just use the national average spend anyway depending on the lender.

[HeadDreamer]

You will be fine with that multiplier and LTV. I just did mine with HSBC online. They want to know all your fixed monthly and yearly expenditures. So look up your insurance, utility etc. and then estimate your food, fuel. They even have a lifestyle expenses category. I err on the high side but are not borrowing much like you.

[purplecloud123]

I went through Santander (completed today!). They didn't want any of that information as far as I know. I used a broker though.

[Bearbehind]

No one can say 'you'll be fine' unless they know your circumstances.

Your LTV and salary multiple are good but they aren't what determines if you get a mortgage or not anymore.

The key factor is affordability.

Not all lenders ask for bank statements (if they see from the credit check you have no debts etc) but any debts or dependants will reduce your affordability and expenditure is often based on national data for people in your situation ie not your actual situation.

Don't panic about all the hype about needing to live on baked beans before applying for a mortgage- it's generally not that strict but if you do have debts and/ or high childcare costs, you might not get what you want.

[HeadDreamer]

Do they really look at the national data but not your particular situation? That sounds mad to me.

[Yellowbird01]

My mortgage is with nationwide and they didn't ask me much about spending, just looked at bank statements. I think they only went back 3 months. Seemed very reasonable and they approved it really quickly, within a few days.