Changes to mortgage affordability assessments

‘How much can I borrow?’ is one of the most often asked questions by first time home buyers and movers. With increasing property prices and rising cost of living, no wonder buyers scratch their head thinking if they will be able to get the mortgage amount they need!

With the most recent energy price changes and higher cost of living, lenders have already started updating their affordability calculators, which may mean some buyers may struggle to get the loan they have hoped for.

How much you can borrow may depend on several factors: your earnings, your expenditures, your credit file information, dependants and your employment status (employed/self-employed/contractor). It is more and more complex to figure out how much exactly you could borrow to buy a house.

However, brokers have excellent tools to show you the whole scope of lenders’ affordability and these tools are quite precise so you will know what house price range to look at.

Don’t just guess or estimate as you might be very disappointed. Don’t risk! Ask a qualified broker for help with affordability assessment and go out confidently to look for your dream home.

If you have any questions, we are here to help.

WHAT TO EXPECT WHEN YOU'RE EXPECTING?

How could expecting a baby or being on maternity/paternity leave affect your mortgage application?

First of all, don’t worry as expecting a baby doesn’t always mean you can't get a mortgage. We have helped many pregnant mums as well as many parents on leave to get mortgages offered.

As always, it is about your income and expenditure when you have had the baby, what plans you have with regards to return to work and what childcare costs, if any, you will be paying for.

Every single lender has a specific criteria about maternity/paternity leave pay. Although having a baby is a personal matter, it affects us in a material way therefore this should be discussed with the lender upfront so we actually select the right lender for you.

Like with being pregnant, when getting a mortgage, complications may sometimes happen and you had better be under a professional care then. If you have an adviser, you can just enjoy the process

If you are planning to buy a house and wish to have a chat, we are here to help.

COULDJOINT BORROWER SOLE PROPRIETOR MORTGAGE HELP YOU?

What could be the benefits of buying jointly with a parent?

With current house prices on the increase, many First Time Buyers may be struggling on their income alone to buy their dream home.

One young person’s salary may not be enough to get a mortgage. Sometimes even two is not enough…

Joint Borrower Sole Proprietor Mortgage might just be the right solution to the problem! A parent could join in the mortgage application with their income to boost affordability so their child(ren) can get on to the property ladder. The joining parent doesn’t need to be the legal owner of the house so there won’t be tax liability for them. They will however be responsible for mortgage repayment.

Please bear in mind that as every case is different, it is best to speak to a qualified broker first. Contact us if you have any questions.