Crane & Co Resources

Is it time to remove the ‘affordability test’ for homebuyers?

Written by Crane & Co | Mar 15, 2022 12:10:26 PM

Mortgage approvals, which surged in 2021 on the back of demand from home-movers, have sustained a high level into 2022, continuing to outpace any period since 2008. However, the loan-to-income ratio of 4.5 times income will most likely remain and continues to be more effective at curbing the risk for borrowers during a housing boom.

Helping local families move home since the 1980's

Crane & Co have been helping local Hailsham and Eastbourne families move home since the 1980’s. We've seen first time buyers usually being affected the most by lending rule changes, as the Bank of England tightens and relaxes lending rules from time to time.

Year to date figures, from market analysts at Rightmove, report that Crane & Co continues to be the number one agent of choice for sellers and buyers in 2022 in the BN27 Hailsham and surrounding area. This is a repeat of the position we have held last year and every year previously.

Advising sellers on how to achieve top prices

Handling such a significant proportion of local property sales throughout the last few decades helps us keep a very close eye on market changes and mortgage lending trends. We can then apply that knowledge and understanding when advising sellers how to achieve top prices and how buyers can secure their perfect home.

The removal of the affordability test and applying carefully the income multiples to calculate mortgage options would make it easier for some first-time buyers to get a mortgage. However, for some renters, finding a 5% deposit still remains a barrier. Lending appropriately is ultimately the most important consideration for both buyers and lenders.  No one wants to see buyers getting into financial difficulty, but arbitrary or inflexible criteria can sometimes add an unnecessary obstacle to worthy borrowers.

With the property market being in a very active and dynamic phase, it’s good advice for sellers to consult the local experts to learn about the current selling opportunities and how today’s market activity provides sellers with opportunities not to be missed.

For advice about moving home, why not give our expert team a call on 01323 440678.

Thanks for reading,

Mike