As lenders new systems are released, we are also noticing the phasing out of income multiples and the introduction of affordability models. So, no more “4 x income” conversations! The amount you can borrow will depend on your monthly net income against expenditure and living costs and the lender will be the judge of what they think you can afford!
As such, we’re hearing that mortgage appointments with local banks or building societies are now taking well in excess of an hour (some up to three hours!). Sadly, if for whatever reason, that lender cannot not offer the customer what they want, the customer may have to approach another lender and sit through another hour or so possibly to find that they too cannot help, and so on. This raises the spectre of a large commitment to time for the consumer without a satisfactory solution. This is where independent and whole of market brokerages come into their own. They will be able to offer you access to a number of lenders, including the high street names, if appropriate, and you only need to have one conversation with the same person. In addition, they should have access to lenders who will manually assess your needs rather than a ‘computer says no’ type scenario, if required. Independents, like us, have access to a number of limited distribution lenders and exclusive products not readily available to the wider mortgage market!