Glossary
Mortgage Terms
Mortgage Affordability
Mortgage affordability refers to a lender's assessment of whether you can sustain the mortgage payments both now and if interest rates were to rise.. Since 2014 (FCA Mortgage Market Review), lenders must conduct detailed affordability assessments covering income, committed expenditure, credit history and a stress test at a higher rate. The amount you can borrow is determined by this assessment — not purely by your income multiple.
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