Am looking for views from mortgage brokers who have seen cases affected by tighter affordability from lenders amid the rising cost of living - either loan sizes reduced or no longer qualifying for loans at all. What's happening out there right now?
4 responses from the Newspage community
"As affordability tightens and new tax hikes take effect at the same time as ONS data is changing due to the cost of living crisis, mortgage lending will almost certainly be impacted. That said, if it leads to holding house prices level rather than the continual rises we've seen over the past two years, that can only be a good thing for first-time buyers."
"Each lender has approached the higher cost of living in different ways and in most cases it has been a reduction in the maximum borrowing available. We recently had a client looking to remortgage his existing mortgage balance onto a new rate and the affordability was failing with most lenders. His income and expenditure had not changed from when he initially took out the mortgage and in the end we had to increase the term from 25 years to 31 years in order for it to work."
"Lenders are gradually updating their affordability calculators now. We have seen a couple send out notifications of this recently. There will be those who don't notify, too, but just make the adjustments. We will see more applications being affected by reduced borrowing in the coming weeks and months. As finances become tighter for a lot of people, we also expect more missed payments and adverse credit enquiries."
"Lets face it, at the moment it is more difficult than ever to get onto the property ladder, rising prices of not just homes, but fuel, energy and even Freddo's. It seems to be a constant battle for those seeking to buy their homes. Tightening affordability along with the cost of living rising is forcing people to stop chasing their dreams of owning a home to continue to fund their landlord's homes instead. More needs to be done to help otherwise we may well be heading into a future of renting and mortgage prisioners."