Maximum Mortgage Affordability Comparison for Residential Mortgages for Single and Joint Persons.
In this article, I have worked on Mortgage Affordability Comparison using the research tool MBT, which references over forty-five UK mortgage lenders, including the major “high street” brands. The data is taken as of 26th November 2023 and should provide an “insight” into what to expect if you are looking to purchase a property now or in the New Year. Your own circumstances will produce different results and would need to be agreed upon, and we recommend this is done by a professional Mortgage Broker such as Niche Advice.
Example 1: Single Affordability Comparison
In this first example, we analyse a single Mans Mortgage Affordability Comparison. He is employed on a basic salary £45,000pa with an annual bonus £3,000 with a one year track record. He is a first time buyer looking to purchase a terraced house in the North East of England for £225,000 with a 10% percent deposit. The council tax is £150 per month, buildings insurance £30pm, and he pays £175pm into a pension. The mortgage required is capital and interest repayment.
* These figures below are subject to credit score and full underwriting. Professional Advice should be sought. This is for information bases only.
| Maximum Mortgage | 1st Placed Lender | 2nd Placed Lender | 3rd Place Lender |
|---|---|---|---|
| 2 YR Fix | Term 25 Years | Accord £210,132 | TSB £210,130 | Halifax £203,970 |
| 2 YR Fix | Term 35 Years | Vida £213,150 | Accord £210,132 | TSB £210,130 |
| 5 YR Fix | Term 25 Years | Accord £210,132 | TSB £210,130 | Aldermore £209,249 |
| 5 YR Fix | Term 35 Years | Foundation £215,950 | Vida £213,150 | Accord £210,132 |
He was looking to borrow £202,500 (90% of the purchase price) as a mortgage. So from the table above he could buy somewhere slightly bigger provided he maintains the full ten per cent deposit, for example, to take the Accord, he could actually buy at £233,484 provided he puts in £23,348 deposit (10%).
Example 2: Joint Affordability Comparison
A married couple with two children Mortgage Affordability Comparison. Both employed. She is on a basic salary of £48,000pa and he is on £25,000pa. Child benefit £2,075pa. They are next time buyers looking to purchase a flat in London for £300,000 with a 15% percent deposit. The council tax is £175 per month, ground rent and service charges are £150pm, and pension contribution is £300pm. They also have car finance £200pcm with a £15,000 balance and £500 outstanding on credit cards. The mortgage required is capital and interest repayment.
* These figures below are subject to credit score and full underwriting. Professional Advice should be sought. This is for information bases only.
| Maximum Mortgage | 1st Placed Lender | 2nd Placed Lender | 3rd Place Lender |
|---|---|---|---|
| 2 YR Fix | Term 25 Years | Accord £348,305 | Cambridge £327,770 | HSBC £285,000 |
| 2 YR Fix | Term 35 Years | Accord £375,375 | Skipton £331,500 | Nationwide £328,800 |
| 5 YR Fix | Term 25 Years | Aldermore £401,499 | Accord £348,305 | NatWest £333,753 |
| 5 YR Fix | Term 35 Years | Aldermore £401,499 | Accord £378,331 | Precise £346,700 |
They were looking to borrow £255,000 (85% of the purchase price) as a mortgage. So from the table above, they could actually buy somewhere slightly bigger provided he maintains the full 15% deposit; for example, to take the Skipton, they could actually buy at £390,000 provided he puts in £58,500 deposit (15%).
If you want us to run a bespoke Mortgage Affordability Comparison to find out how much you can borrow, please complete the enquiry form, and we will be in touch.
