Dacres - Yorkshire's Leading Estate Agent

MORTGAGE PROVIDERS PUT MORE PRESSURE ON BUYERS

Yorkshire’s leading estate agent Dacre Son & Hartley is warning potential home buyers to ensure they can secure a mortgage before they start hunting for their dream home, following the changes in many companies lending criteria. Every mortgage application is now more stringently checked and a proposed change to mortgage regulation may in future require income verification for every mortgage.

Director, Peter Leadbeater at Dacre Son & Hartley says: “The mortgage lender is now ultimately responsible for assessing if the borrower can afford the loan. Interest only mortgage applications are also assessed on a repayment basis to establish if the borrower can really afford it. If the proposed changes happen, lenders may base the borrowing limit on a multiple of the customers’ free disposable income as opposed to a multiple of their salary which could substantially reduce the amount that could be offered.”

Dacre Son & Hartley is warning that this change could make it harder for people wanting to borrow larger sums of money and for those who have recently set up in business. Peter explains: “A lot more evidence and investigation by lenders is taking place in order to establish a more secure lending structure, however many people could fall fowl to this because they may not have the required paperwork or a clear understanding of their true income.”

Peter continues: “The housing market’s recovery is however continuing well so we predict that 2010 will be a good time for people who want to move or get on the property ladder, as long as they are able to prove their income and have a realistic idea of the amount they can borrow.”

“It is important that any potential buyers seek independent mortgage advice in order to review their mortgage requirements even before viewing any properties," concludes Peter.