“First-time buyers’ borrowing power hit by affordability stress”

Oct 24, 2022 | Housing market

Lenders have to assess whether or not you can afford a mortgage, and in recent years this has meant ‘stress-testing’. That’s not just how you react to the spectre of 3 or 4 prime ministers in the space of less than a year or a commute on the M25; it’s whether you’d be able to make your monthly repayments if interest rates went up still further. And there’s the problem for first-time buyers (and we’re probably talking under-40s, not under-30s now), your income has to be up to what might still happen, not just what is happening. Couple that with the need for a 15% deposit if you want an affordable rate, and you can see the extent to which they’re really up against it. With property prices as they are that is; so, something’s got to give, I’d say.

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“Property sales to fall 21% next year as mortgage arrears rise”

“Property sales to fall 21% next year as mortgage arrears rise”

OK, I know I’ve been predicting a property market ‘crash’, or at least a slowdown, for a year or two now. It’s coming, but as is always the case, not for the reasons predicted. I thought that ’supply over demand’ would be the trigger, with new developments springing up on every accessible farmer’s field