Whilst we are not trying to scare monger. We would like to advise caution to those who are caught up in the spiral of house price increases and gazumping being back in town, people are borrowing more money to purchase the home that they want. There was nothing generally in the Budget to slow the property boom down and this is not helping.
See Economic forecast .
Lenders are using crazy income multiples, sometimes more than 4 or 4.5 times salary when assessing how much you can borrow. This is OK at present with low interest rates low but the risk of interest rate increases is always there if the economy does not slow down.
Please do keep an eye on your budget and make sure that you allow for any potential rate increases. Use our mortgage costs calculator to assess what impact a few extra % on interest rates would cost.