Technical director of Hamptons Mortgages Jonathan Cornell predicts that 8 x income multiple products could well be on horizon.
Speaking at the Mortgage Business Expo in London today Cornell says that the current raising of the bar of income multiples by lenders is a natural effect of product innovation on the mortgage market.
He says: “We are seeing a move towards affordability rather than income multiples. Income multiples are at relatively modest levels. I would not be suprised to see 6, 7 or even 8 x income muliples in the future.
“There is no sign that the property bubble is going to burst. The falling interest rates mean home oownership is becoming more important.”