A cursory glance out of the window this weekend shows that summer is most definitely over and it is back to school with a bang!

Although it is raining outside, there seems no danger of the lenders summer sizzlers fizzling out anytime soon and a whole raft of new cuts to lenders mortgage rates has come thick and fast.

Speaking on BBC Radio 5 live this morning about the possibility of rates rising it is important to point out that lenders are still very much lending and for those borrowers who are concerned about future rises the good news is that 5 year fixes are now back now to around the 3% level.

I have also noted some worries for self-employed, contractor and freelance customers about applying for a mortgage following recent mortgage changes.

Fear not however! Part of these changes involve moving away from a simple income multiple calculation and on to the dark arts of “affordability”. Each lender will have a different method of applying this, taking into account earnings and looking at outgoings, dependents, debts etc, before stress testing against a future interest rate of around 7% and then coming out with a lending figure.

Whilst some borrowers will be hit by this, others can actually borrow slightly more than they did previously.

The good news is that lenders are becoming much more au fait with the self-employed world and those who were lending before MMR are still doing so now. If anything, we have seen an increase in lenders who want to sit down with us and understand the issues with this type of customer.

Hence, we have a broad spread of lenders who offer different underwriting criteria to suit your applicant’s particular circumstances.

 

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