Costings for mortgage

[Sjk]

Do you know what they expect? 

 

At the moment I have a spreadsheet based on average costs. 

 

Are they expecting a great level of detail? 

 

Thanks!

[ragg987]

My mortgage company did not ask for too much detail. If memory serves right I submitted a simple spreadsheet which they asked me to summarise by key phases - e.g. cost to wall plate, etc.

[MikeSharp01]

No they will be looking at the big stuff and will use your credit file to check things like outstanding credit card balances and the like. Essentially they will look and see if you can afford it even when the mortgage rate rises - I think current stresses are set at about 7% so provided they think you can afford the monthly repayments at that rate, with everything else squeezed they will go for it. If they don't they may come back to you and ask how you would go about affording it. Given what @ragg987 has said I may have misconstrued your post!

[Grosey]

31 minutes ago, MikeSharp01 said:

No they will be looking at the big stuff and will use your credit file to check things like outstanding credit card balances and the like. Essentially they will look and see if you can afford it even when the mortgage rate rises - I think current stresses are set at about 7% so provided they think you can afford the monthly repayments at that rate, with everything else squeezed they will go for it. If they don't they may come back to you and ask how you would go about affording it. Given what @ragg987 has said I may have misconstrued your post!

 

Could you clarify what you mean by "Current stresses are set about 7%"?

 

Do you mean could I still afford my mortgage if interest rates went to 7%? Probably not! ?

[Ferdinand]

6 minutes ago, Grosey said:

 

Could you clarify what you mean by "Current stresses are set about 7%"?

 

Do you mean could I still afford my mortgage if interest rates went to 7%? Probably not! ?

 

Correct .. it is what the bank will simulate.

[MikeSharp01]

Yes around 6.5 - 7% - you can usually afford more than you think because the interest is only a proportion of the payment (assuming you have a repayment mortgage.)

 

 

[Sjk]

Thanks all, sorry was going into a meeting so was rushed. 

 

The mortgage broker has asked for a copy of the plans and costs for the build. I assume to make sure that it's viable. 

 

So so I was wondering if it needs to be brief like rugg says or if they will be expecting it to the nearest screw. 

[Ferdinand]

7 minutes ago, Sjk said:

Thanks all, sorry was going into a meeting so was rushed. 

 

The mortgage broker has asked for a copy of the plans and costs for the build. I assume to make sure that it's viable. 

 

So so I was wondering if it needs to be brief like rugg says or if they will be expecting it to the nearest screw. 

 

Remember your broker is working for *you*, so will know that different lenders will want different amounts of information. There should be no worries about being completely candid with the broker. 

[Sjk]

Yes you do wonder sometimes..