Mortgage stress test

5aside

Hi all,

have been reading lots of posts on here about loans and mortgages and its all very helpful. Just wondered if anyone had any experience with the 'stress test'. My husband is the single earner in our family and we have 5 children, based on the basic maths used to calculate the personal spending + mortgage payments available online we fail the stress test. Thing is that we are managing to live under the figures they lay out (250 per dependent per month) and can prove that we have the money left over at the end of each month.

As this is the case is it worth trying to prove when we go applying for a mortgage or loan or is there really no point as it will be flat out no?

Basically we are paying 800 a month rent, all our living costs, have a deposit and have money left over at the end of the month- we would like to secure either a mortgage or loan for 60,000. If the banks say no do we have any other options?

Thanks in advance.

Trish56

You really need to provide more information such as your husbands salary, ages, do you have any short term borrowings and if so how much is outstanding and monthly repayment. How much savings have you and how much do you save on a monthly basis.

Lenders now lend on proven repayment capacity and net disposable income. Are you paying the €800 by bank transfer. All lenders now require you to have a minimum disposable income after paying stressed tested mortgage repayment. With just one income and 6 dependents this would be circa 3k per month in your case.

Have you tried your local City or County Council?

5aside

Thanks for that, not tried local city/county council.

We are both under 30, his salary is 60,000+ per year, he was employed but recently self employed but 'contractor' style so has a set monthly income although working for himself. No loans or short term borrowings car payments or credit cards etc, no overdraft, good credit history, we have 10k savings and we save about 150 a month, the rent is paid by bank transfer and all bills are direct debit with no payment problems.

Our problem is there is not quite 3K left over at the end of the month. However, we are able to prove that we are still managing to live and pay rent + save even without having that amount left over. Would it still be a flat out no do you think?

What would my other options be (Im going to research local county council thanks for that great tip!) or is it simply to earn loads more money?

Msrob

5aside wrote: »

Thanks for that, not tried local city/county council.

We are both under 30, his salary is 60,000+ per year, he was employed but recently self employed but 'contractor' style so has a set monthly income although working for himself. No loans or short term borrowings car payments or credit cards etc, no overdraft, good credit history, we have 10k savings and we save about 150 a month, the rent is paid by bank transfer and all bills are direct debit with no payment problems.

Our problem is there is not quite 3K left over at the end of the month. However, we are able to prove that we are still managing to live and pay rent + save even without having that amount left over. Would it still be a flat out no do you think?

What would my other options be (Im going to research local county council thanks for that great tip!) or is it simply to earn loads more money?

Given that ur husband is now self employed he has to have his business for two years before u can apply for mortgage.

Trish56

Msrob wrote: »

Given that ur husband is now self employed he has to have his business for two years before u can apply for mortgage.

Agree regarding going from employed to self employed. You will have to submit 2 years accounts to lender.