With the recent budget announcement and changes to the minimum income requirements we thought we could highlight how this could impact lending and potentially helping buyers upsize or get onto the property ladder. 

Each lender has their own stress tests and income multipliers imbedded into their affordability calculators and believe it or not they all differ!

Some lenders will lend more than others, but what they all essentially do is see how much you earn and how much you pay out. 

Inclusive in this is any credit cards, store cards, personal loans, hire purchases, lease agreements and student loans. What they will also look at, which can be a massive outgoing, is childcare arrangements. 

Most lenders will allow loans and credit to be taken out of the affordability if there is less than 6 months left on the credit, or they will be repaid before the mortgage begins.

With the new minimum income requirements this will take an average working 40-hour weeks income up to over £25k per year.

Mortgage are rates reducing also, so a lot of lenders are now reducing stress levels, as the mortgage repayments are in line reducing. So, they will lend you more money, obviously keeping it affordable.

What I would advise is coming to see a whole of market mortgage broker; like the mortgage lady uk and get a bespoke, tailor-made quote and affordability check to guide you in the right direction.

Online appointments and face to face appointments available. Hope to see you soon. Get in touch to book an appointment today! Give me a call: 0151 318 1592 or send me an email: jen@themortgageladyuk.com