Affordability Calculator

Loan details

Repayment method

Please choose an option

Mortgage term

Please enter the required mortgage term

years

Loan type

Please choose an option

Property value

Please enter a value

Please enter the agreed purchase price, or estimated value of the property

Mortgage amount

Please enter the expected mortgage amount

Please enter the amount your customer wants to borrow. For remortgages please enter the value of the existing mortgage and any additional borrowing required.

Personal details

Type of application

Please choose an option

Applications will be considered for up to four applicants, however, the calculator can only consider two incomes. Please contact the team to discuss further.

Number of financial dependants

Please choose an option

Please enter the number of dependants who are financially reliant on on your customer(s).

Age

Please enter the required mortgage term

years old

The minimum age for mortgages is 18 however there is no upper age limit at the end of the mortgage term. Where there is more than one applicant please enter the age for the first applicant.

Employment status

Please choose an option

Gross basic income

Please enter the expected mortgage amount

£per year

Please enter your customer’s gross annual income (this must be paid weekly, monthly or quarterly), including any car and or large town allowance and any income received from a second job.

Gross additional income (if applicable)

Please enter the expected mortgage amount

£per year

Please enter your customer’s additional gross income from overtime, bonus or commission (must be paid weekly, monthly or quarterly).

Monthly Net Income

Please enter the expected mortgage amount

£per month

Please enter your customer’s net monthly income (this must be paid weekly, monthly or quarterly), this should include any car and or large town allowance and any income received from a second job.

Net monthly additional income

Please enter the expected mortgage amount

£per month

Please enter any additional net income received from overtime, bonus or commission. For further information of the types of income considered please view our Underwriting criteria or contact the team.

Second applicant

Employment status

Please choose an option

Gross basic income

Please enter the expected mortgage amount

£per year

Please enter your customers gross annual income (this must be paid weekly, monthly or quarterly), including any car and or large town allowance and any income received from a second job.

Gross additional income (if applicable)

Please enter the expected mortgage amount

£per year

Please enter your customers additional gross income from overtime, bonus or commission (must be paid weekly, monthly or quarterly).

Monthly Net Income

Please enter the expected mortgage amount

£per month

Please enter your customers net monthly income (this must be paid weekly, monthly or quarterly), this should include any car and or large town allowance and any income received from a second job.

Net monthly additional income

Please enter the expected mortgage amount

£per month

Financial information

Total essential expenditure

Please enter your customer's total basic expenditure

£per month

Please provide the total amount that your customer spends on the following items:Food and Drink; Utilities; Council Tax; Transport Costs; Communication; Childcare; Buildings and Contents Insurance.

Total quality of living expenditure

Please enter your customer's total essential expenditure

£per month

Please provide the total amount that your customer spends on the following items: Household Goods and Services; Health; Education; Clothing; Recreation and Culture; Holidays, Restaurants & Hotels; Other Spending.

Total credit commitments

Please enter your customer's total credit committments

£per month

Please provide the total amount the customer pays per month on outstanding credit balances. This includes Loans; Hire Purchases; other Residential Mortgages, and Credit Cards. For Credit Cards we expect this to be at least 3% of the remaining balance.

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Mortgage application form

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Household Composition:

Age of 1st Applicant:

Adults:

Children under 18:

The system should calculate an average of the ONS figures to be used for this application (K-M)

Using the Total Monthly Income, Age of First Applicant and Household Composition (i.e. total number of adults and children) Entered for the application. The system will establish which ONS figure to use from the relevant tables as shown below

Expenditure by household composition, 2016

Household expenditure by age of household reference person, 2016

Household expenditure by gross income decile group, 2016

Repayment Type
(For max loan calculation only see notes below)*

Repayment

Interest Only

Term

Loan Amount on SVR:

ONS figures relevant to this application

Household Composition

Age of first applicant

Net Monthly Income

SVR Stress Rate

Daily Interest:

Repayment

Interest Only

Term

Loan Amount on VHLR :

VHLR Stress Rate

Daily Interest:

Average of figures ONS relevant to this app

4448

Min Accepted Figure

Net Monthly Income Deciles £ of Spending

Age of first applicant deciles £ of spending

Household Composition £ of spending

No of Adults = 1 & No of Children = 0

No of Adults = 2 & No of Children = 0

No of Adults = 1 & No of Children = 1

No of Adults = 1 & No of Children = >=2

No of Adults = 2 & No of Children = 1

No of Adults = 2 & No of Children = 2

No of Adults = 2 & No of Children = >=3

No of Adults = 3 & No of Children = 0

No of Adults =>3 & No of Children = >=1

Less than 30

30-49

50-64

65-74

<=796

796.01 – 1192

1192.01 – 1544

1544.01 – 1948

1948.01 – 2432

2432.01– 2976

2976.01 – 3612

3612.01 – 4447.99

>=4448

Income

First applicants net monthly income

Second applicants net monthly income

Other income

TOTAL MONTHLY INCOME

Maximum Expenditure to Income Ratio

Expenditure

Committed Expenditure

Mortgage Payment

Total Committed Expenditure

Basic Essential Expenditure

Total Basic Essential Expenditure

Basic Quality of Living Costs

Total Basic Quality of Living Costs

Rules

Action

Decision to be returne

AFD000006

If Expenditure to Income Ratio >Maximum Expenditure to Income Ratio

""

AFD000007

If Total Basic Essential Expenditure entered >Total Minimum Accepted Figure for Total Basic Quality of Living Costs

AFD000008

If Total Basic Quality of Living Costs entered >Total Minimum Accepted Figure for Total Basic Quality of Living Costs

Expenditure to Income Ratio

Residual Income

Residual Required

Maximum Monthly Payment

Max Loan

LTI Calculation

LTV Calculation

Total Gross Income Applicant 1

Property Price

Total Gross Income Applicant 2

Decision

Max

Loan Amount

Loan to income Ratio

Loan Type

Ltv %

Gross annual income inputs

Decision

Gross income App 1 self employed Y1

Gross income App 1 self employed Y2

Gross income App 1 self employed Y3

Max LTV

Self employed App 1 Gross Av.

Gross income App 2 self employed Y1

Gross income App 2 self employed Y2

Gross income App 2 self employed Y3

Self employed App 2 Gross Av.

Gross income App 1 employed/retired/contract/not employed

Gross income App 2 employed/retired/contract/not employed

Gross Additional Income App1

Is additional income Guaranteed?

Gross Additional Income App2

Is additional income Guaranteed?

Net monthly income inputs

Self employeed monthly net income App1

Self employeed monthly net income App2

Net monthly income App 1 employed/retired/contract/not employed

Net monthly income App 2 employed/retired/contract/not employed

Net monthly additional Income App1

Is additional income Guaranteed?

Net monthly additional Income App2

Is additional income Guaranteed?

Name of Applicant(s):

Date:

Case Reference:

Household Composition:

Age of 1st Applicant:

System will need to perform these calculations as part of the rule

Adults:

Children under 18:

The system should then calculate the minimum accepatable figure based on the relevant % tolerance & ONS Figures for Appllication for each expenditure type

The system should calculate an average of the ONS figures to be used for this application (K-M)

Using the Total Monthly Income, Age of First Applicant and Household Composition (ie total number of adults and children) Entered for the application.The system will establish which ONS figure to use from the relevant tables as shown below

Expenditure by household composition, 2016

Household expenditure by age of household reference person, 2016

Household expenditure by gross income decile group, 2016

Repayment Type
(For max loan calculation only see notes below)*

Repayment

Interest Only

Term

Repayment

Loan Amount on SVR:

Interest Only

ONS figures relevant to this application

Household Composition

Age of first applicant

Net Monthly Income

Total

SVR Stress Rate

Daily Intere

Repayment

Interest Only

Term

Repayment

Loan Amount on VHLR :

Interest Only

Total

VHLR Stress Rate

Daily Intere

Average of figures ONS relevant to this app

4448

Grand Total:

Is Data expenditure entered outside of our min accepted figure

ONS Figure

% Tolerance

Min Accepted Figure

Net Monthly Income Deciles £ of Spending

Age of first applicant deciles £ of spending

Household Composition £ of spending

No of Adults = 1 & No of Children = 0

No of Adults = 2 & No of Children = 0

No of Adults = 1 & No of Children = 1

No of Adults = 1 & No of Children = >=2

No of Adults = 2 & No of Children = 1

No of Adults = 2 & No of Children = 2

No of Adults = 2 & No of Children = >=3

No of Adults = 3 & No of Children = 0

No of Adults =>3 & No of Children = >=1

Less than 30

30-49

50-64

65-74

<=796

796.01 – 1192

1192.01 – 1544

1544.01 – 1948

1948.01 – 2432

2432.01– 2976

2976.01 – 3612

3612.01 – 4447.99

>=4448

Income

First applicants net monthly income

Second applicants net monthly income

Other income

TOTAL MONTHLY INCOME

Maximum Expenditure to Income Ratio

Expenditure

Committed Expenditure

Mortgage Payment

Total Committed Expenditure

Basic Essential Expenditure

Council Tax

Council Tax (for mortgages not being redeemed)

Food and Drink

The system must do the following calculation: If Expenditure entered for this commitement type <Min Accepted Figure = 1

Household Composition £ of spending

"-"

"-"

"-"

"-"

"-"

"-"

"-"

"-"

"-"

"-"

"-"

"-"

"-"

Gas/Electricity/ Other Heating/ Water (for mortgages not being redeemed)

Gas/Electricity/ Other Heating/ Water

Transport

Average of figures ONS relevant to this application

Communication

Household Insurances (for mortgages not being redeemed)

Household Insurances

Child Care

Total Basic Essential Expenditure

Total Number of figures outside of Min Accepted Figure (Basic Essential Expenditure):

Basic Quality of Living Costs

Household Goods and Services

The system must do the following calculation: If Expenditure entered for this commitement type <Min Accepted Figure = 1

Average of figures ONS relevant to this application

Health

Education

Clothing & Footwear

Recreation and Culture

Holidays, Restaurants & Hotels

Other Spending

Total Basic Quality of Living Costs

Total Number of figures ou tside of Min Accepted Figure (Basic Quality of Living Costs):

Total of minimum accepted figures for basic quality of living costs

The system should calculate this as follows: Mortgage Payment (stressed for affordability) + Total Committed Expenditure +Total Essential Expenditure + Total Basic Quality of Living Costs

TOTAL MONTHLY EXPENDITURE

The system must calculate this as follows: Total Monthly Income - Total Monthly Expenditure

Residual Income

"0"

The system must calculate this as follows: Total Monthly Income - (Total Monthly Income * Maximum Expenditure to Income Ratio)

Minimum residual Income required

The system should calculate this as follows: Residual Income - Minimum residual income required

Difference

The system must calculate this as follows: Total Monthly Expenditure/Total Monthly Income

Expenditure to Income Ratio

The Expenditure to Income ratio is based on the total spending over total net income.
This figure must be below 85% or 90% dependent on whether the applicants earn below or above £3,000 respectively.
This is the ultimate deciding factor when assessing the affordability of the application.
If the figure is over 85% or 90% the case should be declined.

Total Basic Quality of living costs

IF(Total Basic Quality of Living Costs <Total of minimum accepted figures for basic quality of living costs,"Refer","Accept")

Key

All fields in purple will be pulled direclty from the application (Terms)

All fields in Orange are those which the system must calculate

All fields in Blue are fixed data that we must be able to store in the system (Constants)

All text in Orange shows the calculation that the system must perform

Rules

Capital & Interest

Daily Rest

Loan Amount

Int Rate

Term

Monthly Payment

Rules

Action

AFD000006

If Expenditure to Income Ratio >Maximum Expenditure to Income Ratio

AFD000007

If Total Basic Essential Expenditure entered >Total Minimum Accepted Figure for Total Basic Quality of Living Costs

AFD000008

If Total Basic Quality of Living Costs entered >Total Minimum Accepted Figure for Total Basic Quality of Living Costs

Expenditure to Income Ratio

Residual Income

Residual Required

Maximum Monthly Payment

Max Loan





Household Composition:	Age of 1st Applicant:
Household Composition:	Adults:		Children under 18:
Repayment Type (For max loan calculation only see notes below)*
	Repayment	Interest Only	Term
Loan Amount on SVR:

	SVR Stress Rate		Daily Interest:

	Repayment	Interest Only	Term
Loan Amount on VHLR :

	VHLR Stress Rate		Daily Interest:
				Min Accepted Figure

Income
	First applicants net monthly income
	Second applicants net monthly income
	Other income
TOTAL MONTHLY INCOME

Maximum Expenditure to Income Ratio

Expenditure
	Committed Expenditure
	Mortgage Payment


	Total Committed Expenditure

	Basic Essential Expenditure
	Total Basic Essential Expenditure

	Basic Quality of Living Costs
	Total Basic Quality of Living Costs

Rules
Action
AFD000006	If Expenditure to Income Ratio >Maximum Expenditure to Income Ratio
AFD000007	If Total Basic Essential Expenditure entered >Total Minimum Accepted Figure for Total Basic Quality of Living Costs
AFD000008	If Total Basic Quality of Living Costs entered >Total Minimum Accepted Figure for Total Basic Quality of Living Costs





Expenditure to Income Ratio

Residual Income

Residual Required

Maximum Monthly Payment

Max Loan

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Affordability Calculator

Loan details

Repayment method

Mortgage term

Loan type

Property value

Interest only amount

Repayment amount

Mortgage amount

Loan to value

Personal details

Type of application

Number of financial dependants

Age

Employment status

Gross basic income

Self Employed Year 1

Self Employed Year 2

Self Employed Year 3

Gross additional income (if applicable)

Type of additional income

Monthly Net Income

Net monthly additional income

Second applicant

Employment status

Gross basic income

Self Employed Year 1

Self Employed Year 2

Self Employed Year 3

Gross additional income (if applicable)

Type of additional income

Monthly Net Income

Net monthly additional income

Loan to Income Ratio

Financial information

Total essential expenditure

Total quality of living expenditure

Total credit commitments

Results

Next steps

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Mortgage Application

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