Many Independent Financial Advisers and some leading banks have criticised certian mortgage brokers and lenders for offering mortgage deals up to 5 X income. Debate has raised following one leading mortgage broker promoting such a scheme.
Our view
This position is ludicrous and smacks of certian lenders and brokers profiteering from the fact that the property market has hit all time highs with many people faced with being unable to purchase a home or even get on the property ladder at this time.
Those who are desperate to get on the ladder beware. We believe that the property market, whilst slowing down in the South East, will soon start to slow down in the rest of the country. You may be able to buy that house you want a little cheaper at the end of the year.
Our advice is simple, deals that offer you a solution to your current mortgage problem may be ideal now - but think about the worst. What if interest rates double? Could you afford the payments then? What if you or your partner lose your job or suffer a drop in income? Could you afford the payments then?
Make sensible decisions about your future.
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