This Week's Insights 12/08/2019
The Affordability Challenge Is Relevant To All Incomes
Lots of advisers expect to see large affordability ranges for complex and large income cases. Many assume that affordability becomes generic for the lower income, 'vanilla' cases. How wrong they are!
Let’s take a common ‘vanilla’ example:-
Joint applicant with no kids.
Total PAYE income of £27,000.
£1,000 credit card debt and £70 monthly loan repayments.
The affordability results range from £97,000 to £128,500, a whopping 32% range. From £103,000 to £134,000 is a difference to anyone, but in some parts of the country this could mean an extra room, or two!
So who were the lenders at each end of the range? No prizes this time but the lenders were Santander and Skipton… but who was top and who was bottom?
MBT Affordability Statistic of the Week…
Based on cases run through MBT Affordability in the last month where the first applicant was less than 30 years old, the maximum affordability league table top five was:
1. Virgin Money 2. Nationwide 3. Skipton 4. Halifax 5. TSB
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