The final figure in each column shows the amount that each couple have available each year to cover the mortgage and the higher costs of running a larger property. The fist couple have demonstrated that they clearly can afford the property – moreso that the second couple, despite the idntial income.
This demonstrates the importance of considering what you are able to afford rather than just working on the issue f multiples of income
[table caption=”Tabulated example of Annual Income vs Expenditure” width=”625″ colwidth=”20|100|50″ colalign=”left|center|center|center|left”]
Item,Couple with car and no children,Couple with two children
Income
Salary 1,£20000,£20000
Salary 2,10000,£1000
Total,£30000,£30000
Deductions,,
Food and Drink,£3640,£6240
Clothes,£800,£1000
Household expenses,£1440,£1600
Scool expenses,None,£750
Car loan,None,£2000
Fuel,None,£1200
Entertainment/holidays,£5000,£1500
Subscriptions,£150,None
Standing orders and direct debits,£100,£150
Insurances,£300,None
Water rates,£500,£500
Council tax,£1200,£1000
Loan and hire purchase repayments,None,£600
TOTAL DEDUCTIONS,£13130,£16440
INCOME MINUS DEDUCTIONS,£7870,£4560
[/table]