Flexible Mortgages Instant Online
Why Mortgage Affordability Matters
More and more mortgage lenders are now changing their criteria when considering how much they will allow you to borrow. Rather than basing it on multiple incomes, lenders are now actually looking at affordability.
This is great news for homebuyers, particularly First Time Buyers (FTB’s). According the Council of Mortgage Lenders, FTB’s now get offered an average borrowing of 3.24 times their income. For most, this is not normally enough to buy where they want to live.
However, this does not need to be the case. By looking at affordability rather than straightforward income multiples, lenders can see what a potential homebuyer can realistically afford. This is a real boon for potential borrowers, especially FTB’s trying to get that first foot on the property ladder.
Moneyfacts, the independent research company, revealed that five of the top 10 mortgage lenders now look at affordability (also known as ability to repay) in preference to income multiples.
The good news too is that even some of those lenders who still work on the income multiples basis have refined their criteria. This means that they may lend more where there are larger salaries or a bigger deposit involved.
If you are looking to mortgage or remortgage, the most important thing is to borrow how much you realistically think that you can afford. Just because a lender believes that you can afford x amount every month, if you feel that it would be over stretching yourself, then don’t go ahead with the mortgage.
| Mortgage For People With Bad Credits : mortgage for bad credit history ... their spanish mortgage is available from abbey as a santander euro mortgage (abbey are part of spain's ... deals can look great on the surface, but read the small print 100% Mortgages With Bad Credit : morgages for people with bad credit ... there are some inexpensive, high quality ones available and will help you out financially should you ... however, as there is no formal link between the base rate and a svr mortgage, you cannot be certain Get A Mortage With Bad Credit : bad credit home mortage ... in fact, their direct mortgage (telephone) service which launched in the late 1980's, is an award-winner ... you need to go back to the basics and re-look at mortgages and how they work |