Fighting the Mortgage Affordability Battle

Wednesday, October 27th, 2021

As rising property prices have presented fewer ‘affordable’ mortgage options to prospective homebuyers and those looking to remortgage, it is now more important than ever to conduct careful research across the mortgage market, according to the latest Mortgage Broker Tools (MBT) Affordability Index. **

Furthermore, the latest index has shown that more mortgage enquiries were deemed unaffordable as regards the target mortgage required when compared to the beginning of 2021.

Marginal Shortfalls CAN be Overcome

The analysis by MBT also showed that of those applicants who failed to achieve their target mortgage amount, a high percentage of those were marginal, so it follows that by extending the breadth of their search across the mortgage market, the required lending may very well have been achieved in many of those cases. 

In short, the strength of the UK property market (which has until recently been driven in part by the stamp duty holidays) has made it more difficult for buyers to be able to afford the home of their choice given the need to continually stretch their borrowing to keep up with rising prices. 

Average Property Prices up by 4.4%

By way of example, the Halifax House Price Index has indicated that the average property price has increased by more than 4.4% between January and August 2021.

Seek Advice from a Professional Mortgage Broker

It is for these reasons that using the services of a professional mortgage broker who can assess affordability and criteria before providing mortgage advice and starting an application could save precious time and help prevent the ‘dreaded decline’ following a lender’s decision-making process.

Experienced and reputable mortgage advisers will not only be up to date with all the changes and criteria, but they will also be able to determine, based on an individual’s circumstances and borrowing requirements, which lenders are most likely to provide the mortgage required.

Our Personalised Mortgage Advice 

With that in mind, if you want to see what some of our many clients think of the first-class service, they have received from us, click this LINK to check out our testimonials.

If you would like to discuss your individual circumstances and requirements, and receive personalised no-obligation mortgage advice, please call one of our friendly experts here at Caboodle Financial Services of Sutton Coldfield, Birmingham on 0121 308 9114, or alternatively, complete our online enquiry form HERE and one of our team will be in touch.

We look forward to hearing from you.

** Source – Financial Reporter 21-09-21

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. CONSOLIDATING DEBTS MAY INCREASE THE TERM AND TOTAL AMOUNT PAYABLE.

Your initial consultation is free and you are under no obligation to proceed with a mortgage we recommend. There will be a fee for mortgage advice. The exact fee will depend on your circumstances and may be reduced depending on the loan amount and any commission we receive from the lender. It is estimated that the fee will be £595, but it may range from £495 to 1% of the amount you borrow. The fee is only payable on completion and can normally be added to the mortgage. This will be discussed and agreed with you before you make an application. Please ask for a personalised illustration.

Secured loan rates from 3.95% APRC, although we have plans available up to 29.9% APRC which allow us to assist customers with the most severe credit problems. The overall cost for comparison is 7.65% APRC. For secured loans a broker fee up to 10% of the loan amount borrowed may be payable on successful completion. A lender fee may also apply. The actual APRC available will depend on your circumstances. All loans are subject to status. Please ask for a personalised illustration.

The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK.

Caboodle Financial Services Ltd, registered in England at Mere Green House, 46-48 Mere Green Road, Sutton Coldfield, West Midlands B75 5BT (number 08044670).
Caboodle Financial Services Ltd is an appointed representative of PRIMIS Mortgage Network (PRIMIS), a trading name of Advance Mortgage Funding Ltd which is authorised and regulated by the Financial Conduct Authority. PRIMIS is only responsible for the service and quality of advice provided to you in relation to mortgages, protection insurance and general insurance products. Any other product or service offered by Caboodle Financial Services Ltd may not be the responsibility of PRIMIS and may also not be subject to regulation by the Financial Conduct Authority. The Financial Conduct Authority does not regulate some forms of Buy to Let.

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