The lender has created an affordability calculator that allows brokers to gauge an applicant’s borrowing potential and will offer the option to use either affordability or income multiples on full status applications.
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Simon Biddle, head of marketing and communications at Infinity, commented: “The feedback from intermediaries is clear; affordability continues to be an issue. That is exactly why we have responded with the affordability calculator. At Infinity we intend to do all we can to help hard pressed home buyers. The feature of using either the affordability calculator or the income multiple offers a level of flexibility that is unique to Infinity.”
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However, Steve Brockman, director of A2B Mtg Co Ltd, stated it was up to the lender to decide which method they used to base their lending on, rather than placing that responsibility on the intermediary.
He said: “Affordability is key, especially in a climate of rising interest rates. Multiples should be phased out, as they don’t give a true level of affordability. A lot of companies use multiples purely as a guide and still ask the affordability questions anyway. Infinity should make up its mind which way to lend. I know it is trying to lend money to people as best as it can, but at the end of the day, if a client can’t afford it, it’s irrelevant.”
