First time buyer confidence is increasing. We are seeing healthy enquiry levels from first timers either on their own or using a shared ownership scheme. Lenders historically agreed mortgages based on income multiples. Some would lend up to 3.75 x income, some up to 5.1. On joint applications similar style calculations applied. Most lenders now base their decision on affordability along with a review of your credit history which details financial liabilities, previous addresses, financial associations you have with other people and much more. Credit searches provide a full financial picture to lenders, enabling them to decide if you have a good risk profile. You can access your own Experian report via the AToM website and we recommend this to any applicant looking at the mortgage market. It is well worth understanding what details a lender will be using to assess your potential borrowing capacity.
Despite the school break coming to an end with many of us breathing a sigh of relief to have survived it safely without losing too much hair, Christmas is just around the corner and will creep up quickly! Have the last few weeks been costly? Have you been ignoring your finances hoping they will go away? Are there financial decisions looming? If so, now is a good time to start reviewing them.
Recent figures from Credit Action suggest that 33,600 applications for credit have been turned down daily during the past six months. 3,036 people became redundant daily in the 3 months to the end of June. In the same period 125 properties were repossessed daily and, today, 362 people will be declared insolvent or bankrupt. Stark figures indeed!
An Equifax survey recently reported that almost 30% of consumers are turning to parents or close family members for help with debt repayments or finances. More than 50% will openly discuss their financial situation with friends and family. This being the case, it really is time to seek independent professional advice.
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