Why do you take into account savings, outstanding loans and regular payments when I've already had to present this information in order to get a mortgage?
It is important that in assessing an application for assistance through HomeBuy, we undertake an affordability assessment.
We multiply your annual income by 3 for joint applicants and by 3.5 for single applicants, we then add any savings you have stated you have on your application form and deduct any loan repayments you have stated on your application form to get to your affordability figure. This figure is used when housing associations or developers are looking to contact applicants regarding any properties they have available. You will only be contacted if you can afford a property or product (e.g Open Market HomeBuy/HomeBuy Direct).
By taking into account an applicant's mortgage ability as well as any savings, regular outgoings and ongoing expenses, developers are seeking to ensure that you can continue to keep up payments and the ongoing commitments of home ownership.
We are not party to the information that you provide to a mortgage lender.
