A journalist at The Times has heard from some brokers that, with the cost of living increasing, lenders are increasingly likely to review their affordability calculations when considering mortgage applications.
Halifax has already tightened its lending restrictions for those with smaller incomes (borrowers earning between £30,000 and £40,000 can borrow up to 4.49 times their income, regardless of deposit size, down from a previous cap of 4.75 times).
Her questions are:
- Do you know of any other lenders that have restricted some LTIs for lower earners, in light of rising living costs?
- Do you think more lenders will follow suit, either officially or unofficially, and perhaps look at people slightly less favourably?
- Who are the people who are likely to be most affected?
Please keep your responses short and to the point. Soundbites, not War and Peace! Deadline is fairly tight - 3PM today.