This Week's Insights 15/07/19

Santander Have Been Busy

They've added a second (higher) maximum loan amount for customers that want their 5 year fixed products.

Affordability has been tightened for lower income cases – a rerun of a 2 month old case with a joint income of £42k showed a maximum loan amount reduced by £20k.

More sensitive to credit and loans – another rerun of an old case gave a significant reduced maximum loan for a case with £10k of credit.

Platform Juggle Multiples

They continue to base affordability on multiples of 4.49 or 4.85 but have changed the thresholds that determine the rate applied to a case.

Benefit & Maintenance Income

Which lenders accept Child benefit, Child/Working tax credit, Universal Credit, Maintenance etc? In a recent case with all of these benefits, the range of affordability was £40k to £160k! Lenders have very different rules but fortunately MBT Affordability takes care of this for you.

MBT Affordability Statistic of the Week.....

Based on all of the real first time buyer cases run through MBT Affordability in the last month, the maximum affordability league table top five was: 1. Virgin 2. Nationwide 3.Skipton 4. Halifax 5. TSB.

If you have any requests or comments about 'Mr Affordability says...' please email me at mraffordabaility@mortgagebrokertools.co.uk.

Thank you

Mr Affordability

Tara Choraria