As you’re aware, there have been recent changes in the market which affect mortgage affordability. So we’re writing to tell you about these changes and what it means when working with us.

What’s happened and what does this mean?

Future interest rate expectations across the market for the five-year horizon have increased. This means affordability restrictions for your client are now tighter and therefore some applications that we may have previously accepted, will no longer meet our affordability criteria. Should this happen, we will show you the maximum loan amount that we can offer them instead.

What we’re doing to help

We’ve created a new affordability calculator for you to use before submitting any applications.

Our calculator allows you to receive an instant snapshot of how much we can lend to your clients. It takes into account the new updated interest rate expectations, your applicant’s current and anticipated tax band and their rental income. So when you come to apply, there should be no surprises.

The calculator can be found on both our Paragon Mortgages and Mortgage Trust websites.

If you have any questions, please don’t hesitate to get in touch.

Kind regards

Moray Hulme
Head of Sales