Your basket is currently empty!
Tag: AFFORDABILITY
AFFORDABILITY
What income is included in a lender’s affordability assessment
In the UK, when a lender assesses affordability for a mortgage or other loan, they typically consider various sources of income to determine the borrower’s ability to repay the loan. The income sources generally included in a lender’s affordability assessment can vary slightly depending on the lender and the type of loan, but they commonly… Read more
Stress ICR (Interest rate affordability stress test)
The interest rate affordability stress test is a crucial part of the mortgage application process in the UK. It is designed to ensure that borrowers can afford their mortgage repayments not only at the current interest rates but also if rates were to rise significantly in the future. This test is applied by mortgage lenders… Read more
Expenditure considerations when applying for a UK mortgage
When applying for a mortgage in the UK, lenders conduct a thorough assessment of your financial situation to determine your affordability and ensure you can manage the repayments. This assessment includes a detailed look at your income, credit history, and expenditure. Understanding the types of expenditures that lenders take into account can help you better… Read more