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Nett disposable income (NDA)

  • 14-09-2013 6:49am
    #1
    Worriedmind
    Banned (with Prison Access) Posts: 39 ✭


    Hi,

    We've to fill out TSBs household cashflow forms for a mortgage application and it says we should have €2500 nett disposable income.

    Presumably this inclues bills /savings etc? I.e lets say we earn €4K per month as a couple after tax. The max mortgage payment permitted would be €1.5K per month and the remaining 2.5k covers food/bills/savings/car etc? Or are they expecting us to have €2.5K NDA after paying mortgage and car/bills/food?? Surely not?! If I had that I'd be a happy boy!!


Comments

  • #2
    The_Morrigan
    Registered Users, Registered Users 2 Posts: 9,368 ✭✭✭The_Morrigan


    When I was getting my mortgage it was (salary + other income) - (taxes + fixed monthly outgoings).

    For me my other imcome was rent from a lodger and they only allowed a percentage of that. They also included the management fee I would be paying under fixed monthly outgoings if I was successful in getting the mortgage as this would be a fair chunk of money too


    That was five years ago though so you're best asking the bank how they calculate it, they may have different rules or preferences.


  • #3
    Worriedmind
    Banned (with Prison Access) Posts: 39 ✭Worriedmind


    So is it (money in) - (money out + mortgage) should equal 2.5k.

    Or

    (money in) - (mortgage) should equal 2.5k in order to cover other money out (bills/recreation etc)


  • #4
    killers1
    Registered Users, Registered Users 2 Posts: 1,443 ✭✭✭killers1


    Worriedmind wrote: »
    So is it (money in) - (money out + mortgage) should equal 2.5k.

    Or

    (money in) - (mortgage) should equal 2.5k in order to cover other money out (bills/recreation etc)

    It's more the second one approx. the household expenditure form (HEF) takes into account income less living expenses less mortgage and guideline is you need a minimum €400 financial cushion left over. The €2.5k is more their old way of assessing applications and the guideline is that after the stressed mortgage repayment is deducted from net income you should have €2.5k to live on but as I said its the HEF form they look more closely at nowadays. Did you get a HEF form to complete?


  • #5
    Worriedmind
    Banned (with Prison Access) Posts: 39 ✭Worriedmind


    Thanks for that. Yeah we have a HEF to complete.

    On the basis of that it appears that we have €1000 left every month after paying a mortgage/savings/bills/transport etc etc. but in reality we never do have 1000 left! So there's something missing although I can't think what! I've only been spending cash the last 6 months so It's hard to try to pinpoint where it goes!

    As we're currently living with parents i fing the whole HEF thing complete nonsense ass it's all purely guesswork. How am i supposed to know how much i'm going to spend on bins/ESB/gas etc in a house I haven't even picked yet?!


  • #6
    killers1
    Registered Users, Registered Users 2 Posts: 1,443 ✭✭✭killers1


    Worriedmind wrote: »
    Thanks for that. Yeah we have a HEF to complete.

    On the basis of that it appears that we have €1000 left every month after paying a mortgage/savings/bills/transport etc etc. but in reality we never do have 1000 left! So there's something missing although I can't think what! I've only been spending cash the last 6 months so It's hard to try to pinpoint where it goes!

    As we're currently living with parents i fing the whole HEF thing complete nonsense ass it's all purely guesswork. How am i supposed to know how much i'm going to spend on bins/ESB/gas etc in a house I haven't even picked yet?!

    Your ptsb Advisor is supposed to help you to complete the HEF to ensure the figures are realistic particularly as you live at home, are a first time buyer and may not be aware of the likely amounts of the expenses to be incurred..


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