Mortgage Affordability Calculator Explained
Mortgage affordability calculators are a new way for mortgage lenders to calculate how much you can borrow for a new mortgage. Mortgage lenders have traditionally looked at income multiples to decide how much to let you borrow. Although now due to lifestyle, some borrowers may be able to get a little more through Lenders that use mortgage affordability calculators.
There are approximately 25 lenders currently that lend on your ‘ability to pay’ instead of income multiples like 2 times joint income or even 3.5 times single income. But if, for example, you have a clean credit
record, no children and two incomes, some lenders may be willing to lend a little more.
Enhanced Affordability Calculators
Lenders are now prepared to offer you even more if you choose a five or ten-year fixed rate mortgage. This is because the monthly repayments stay the same for a long time, and so feel like less of a risk to the lender.
For more details on lenders that use mortgage affordability calculators please feel free to contact us and one of out advisors will contact you to discuss how much you could borrow with a lender that uses affordability calculators.