mortgage simple definition: What is mortgage affordability?

What is mortgage affordability?

What is mortgage affordability?. Relaxed Conversation : Mortgage Rates and Affordability

What is mortgage affordability? video duration 1 Minute(s) 56 Second(s), published by View It, Love It, Live It on 04 08 2014 - 08:35:44.

Darren Shaw from http://www.visionifp.co.uk/our-team/cornwall/darren-shaw.php leaves the office to explain what mortgage affordability is all about
Gone are Spokesperson on Justice Niall Collins speaks during Fianna Fáil debate on housing affordability and mortgages.

For more information log on to www.channelstv.com This is a series of videos taking you through the three step process for getting a mortgage
In this one we takk about Affordability - can you afford the mortgage It's that time of the week for another casual conversation with JB and Summer G.! Let's get REAL about interest rates and how they REALLY impact your payment .

Darren Shaw from http://www.visionifp.co.uk/our-team/cornwall/darren-shaw.php leaves the office to explain what mortgage affordability is all about.

Gone are the days when you could walk into you bank or building society in an attempt to sweet talk the bank manager into lending you the monies you require. The bank managers no longer possess a ‘rubber stamp’ by which they can sign off on your mortgage. Nowadays mortgage lending is based purely around ‘evidencing your affordability’. Affordability is made up from a combination of factors such as age, income, number of children and existing secured and un-secured debts. Throw all of these factors into the melting pot and out comes your affordability. Just to confuse matters even further different lenders have different affordability calculations, some will lend to age 75 and others age 68, some will accept 100% of all income and others will only take 50% of any bonus/ overtime etcyou get the picture. My classic example of this is Joe Bloggs buying his million pound mansion. He has a deposit of £950,000 cash that he has inherited and needs to borrow 50k. However due to whatever reason we cannot evidence his affordability for this £50,000 loan. On this basis the lenders will not lend him the small amount he requires. Joe Bloggs reaction is the same time and time again and usually sounds like this.’but look at all my equity I am not likely to default on such a small loan, I have had mortgages all my life and never missed a payment, just look at my credit score. Unfortunately we live in a post recession market where lenders criteria can be very strict. Unfortunately what they say goes and unless you can jump through the hoops which they put in your place then don’t expect to be able to borrow the money. Again I re-iterate, employ a Whole of Market, Independent Adviser who can look at and assess your affordability in order to match you up with a lender that is sympathetic to your particular needs and circumstances. This will save you time, money and heartache in the long run!