TYLER MORTGAGE MANAGEMENT - INDIVIDUAL EXPERT ADVICE
When our advisers first started their careers, lenders offered a simple multiple of 2.5 times the higher earner's income and once times the secondary earner's income.
As economic conditions changed and lenders chased market share this multiple rose through 2.75 times up to 3.5 times in the 1990's and on to over 4 times income in the early “noughties” peaking at up to 5 times the principal earner's income or up to 4 times the joint income in some cases by 2007.
Over the years lenders have introduced unpublished rules based on affordability that could take borrowers as high as 6 times their income (now generally withdrawn as lenders are less keen on increasing new borrowing due to the continuing liquidity crisis).
Logically, as Bank of England Base Rate is now at a 300 year low you might expect that if you can borrow at 3% then you can borrow 5 times more than when mortgages were readily available at 15%, not so. Now, everyone expects that interest rates will increase in the next few years and what concerns both the lender, and TMM as your advisor, is long term affordability.
We will assess at what level you should be borrowing based on your current expenditure and income profile and recommend a maximum loan you should consider – this may well be less than the simple approach of taking your income and multiplying it by a lender's published criteria. We have learned over the years that property purchase can cause people to take enormous leaps of faith with their financial future that sometimes do not pay off – we will work with you to assess the availability of funding at the level you want then choose the most appropriate scheme and lender to match your requirements.
| BACK TO THE TOP |
Your home may be repossessed if you do not keep up repayments on your mortgage.
To discuss your current or future mortgage requirements please call 020 7930 7242.
A typical fee for arranging your mortgage is 1.5% of the loan amount.