From Keith ButlerI was stunned to read in Mortgage Strategy (September 12)somebody as respected in the industry as John Wriglesworth suggesting income multiples could be raised to 6 x income. Speaking as somebody who has been in the mortgage industry for nearly 30 years it seems ludicrous that here we are in the 21st century and there are still some lenders relying on something as primitive as income multiples. Does it make sense to anyone that a lender would lend the same amount to, say, a single man living in Aberdeen as they would to a married man with five children living in central London simply because they are earning the same amount? This seems like nonsense to me and has done for many years. A much more realistic assessment of customers’ income and expenditure is needed. I wouldn’t disagree that if affordability were to be properly assessed and then calculated back into crude income multiples there would be occasions where 6 x income would be found to be prudent. But equally there would be occasions where it would be inappropriate. I believe Wriglesworth made the comments while he was in Spain. Perhaps he had been too long in the sun. Hopefully now he’s back in Blighty he’ll see that income multiples are totally inappropriate.
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GE Home Lending, UK provider of specialist mortgages and secured loans, has appointed Paul Thomas as head of originations.Previously head of mortgage processing for GE Home Lending, Thomas has been active in the mortgage industry for more than 25 years. He has great experience in a wide range of key areas including operations, credit, IT […]
Coventry is improving its range of products for first-time buyers.The societys MOREgage product is a combined mortgage and unsecured personal loan that gives first-time buyers and movers the ability to not only purchase their house, but also the capacity to cover additional associated costs. With a high average house price making it increasingly difficult for […]
Lenders have hit back at Nationwide after it accused them of making unnecessary lending charges. Stuart Bernau, executive director at Nationwide, says Halifax and Abbey run the risk of being accused of blatantly profiteering by charging higher lending charges and higher rates for those needing to borrow more the 90% of the value of the […]
Relying solely on advertised APR rates to choose the best deal on a loan could mislead borrowers into picking the most expensive product on the market rather than the cheapest, warns online financial data comparison site Moneynet.co.uk.Richard Brown, chief executive of Moneynet, says: “Consumers are led to believe that the cheapest loan is the one […]
Steve Webb – Director of Policy and External Communications As the Autumn Statement approaches, Steve Webb calls for the Government to stop tinkering with tax relief. Twice a year, in the run-up to the Spring Budget and the Autumn Statement, we face a torrent of speculation as to what changes the Chancellor might make to […]
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