Posted on 25 November 2014
Six months on and the dust is still settling after the big media storm around the new mortgage affordability tests. These are the regulations which demand that lenders must ‘stress test’ the financial well being of potential borrowers. While it’s true that the days of borrowing five times your salary are probably long gone, in reality there have always been a level of checks. However, there are some big advantages to having the support of a good independent mortgage broker on your side when facing the new tests:
1. When you look more closely at the issue, it’s clear to see that when it comes to the mortgage tests, it’s not just about monthly outgoings. It’s also about debt to income ratio. While the new tests affect all lenders, the fact is that all banks have different lending criteria so an independent broker like Mortgage Arena can advise you on the best lender to suit your circumstances.
2. An independent broker should not only know the whole of the mortgage market, they should also keep track of changes within the market and trends amongst the different lenders. This should help give you a clearer view of the all the mortgage options available to you.
3. The new mortgage affordability tests demand a detailed picture of your finances, along with all the supporting paperwork. As well as looking at areas such as existing debts and credit card debt, they will also assess the financial impact of your future plans. Examples of this could be if you’re considering having children or becoming self-employed. A good independent mortgage broker should work with you in the lead-up to applying for your mortgage to ensure that all your finances and bank accounts are in order in advance of applying for your mortgage.
4. If you’re thinking about applying for your first mortgage, you’ll know how daunting a prospect it can be. After all, this is probably the biggest financial commitment you’ll ever make. The new mortgage affordability tests have only added to the pressure. With the support of an independent mortgage broker, you get added peace of mind that things are moving in the right direction.
5. The mortgage application process has been known for being complex, even before the new affordability tests came in! An independent mortgage broker should be able to chase up a response from the potential lender for you and translate any complex jargon into everyday language so that you understand exactly what’s going on with your mortgage application!
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