![]() If you have significant credit card debt lenders will presume you need to spend 3% to 5% of the balance to service the debt each month. ![]() Be sure you check your credit report 6 months in advance of purchase consideration so you can clear up any outstanding issues like missed payments or identity theft.Nationwide also offers a similar calcualator, though it has quite a few steps in it and collects some personal data like your birthday. In general lenders do not like more than 60% of a person's income going toward their mortgage and monthly outgoings. Money Advice Service offers an affordability calculator which takes into account your outgoings. Anticipated Market Condition Changes: lenders want to ensure you will still be able to make payments if interest rates rise in-line with typical historical shifts.Anticipated Personal Living Changes: risk of job loss, illness, and major life changes like having a child or taking a career break to obtain further education.If your numbers sound off they may ask to see recent bank statements to authenticate them. Beyond the headline numbers, some lenders may lower your total limit for each additional child in the family. Outgoing Expenses: debt service fees on credit cards and other loans, insurance policies, council tax, vehicle expenses, utilities, and other basic living costs like recreation and childcare.Self-employed people need to show additional documentation including their bank statements, business accounts, as well as their recent income tax payments. ![]() Some lenders may count overtime income in full while others may count it at a reduced rate of 50%.
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