Please find below my affordability tables for this month. Paradigm have been comparing the following thirteen Lenders quarterly since MMR day in April 2014 using exactly the same scenarios each time. These tables enable you to judge which lenders are leading on affordability in the first time buyer and next time buyer areas.
Since last month...
As you can see, in comparison to March's stress test, there are some movers in terms of how much Lenders will lend to first time buyers and next time buyers. Barclays came out best on FTB lending whilst Virgin came out on top for next time buyers.
Halifax and Nationwide remain within the top four for FTB with Kensington rising in the tables. For next time buyer lending, Nationwide is also positive, rising to third place, Virgin money tops the tables, rising two places.
Scenario 1 – Joint First time buyer at 90% LTV – no dependants. Student loan and credit card debts. Incomes £28,000 and £25000 + car allowance £500
pcm respectively (wishing to borrow £225,000)
Scenario 2 Joint Next time buyer 70%LTV – 2 dependant children, car loan and nursery fees. Incomes £55,000 + £6000 car allowance and £45000 respectively (wishing to borrow £300,000)
Comparing affordability stress tests over the past year, Virgin Money have been the most consistent in their approach, we can see them slightly lower in the first time buyer tables this month although they remain top spot for next time buyers. Halifax have also remained at a similar level throughout. Nationwide have stayed within the top three lenders for first time buyer for the past year. However, Skipton have dropped an average of seven places over the year, but we can see them back up there this month. In terms of next time buyer affordability, both Halifax and Santander have been very consistent in their approach.
Tip of the Week...
Recently, I have had numerous queries surrounding Expat BTL. For your information, the below lenders will consider expats for BTL lending:
National Counties (Members of the Financial Action Task Force)
Investec (for high net worth applicants)
Earl Shilton (accessible through Brightstar)
Saffron Building society (accessible through Brightstar)
Kent Reliance (newly added to our panel)