The range uses an affordability calculation based on income and expenditure instead of income multiples, which it said offers the only two-year fixed rate product in the non-conforming market underwritten this way.
The approach is available across Mplc’s lending spectrum. No higher lending charges are applicable and products are available up to 95 per cent LTV, full-status only. There are 12-month and three-year discounted and two and three-year fixed rates available, plus £200 cashback on heavy and fast-track remortgages.
Peter Beaumont, sales and marketing director at Mplc, said: “While income multiples are still appropriate in many instances, affordability calculations are often a more realistic basis on which to assess an applicant’s ability to repay a mortgage.”
He added: “Affordability calculations are ideally suited to advised sales where an intermediary can help an applicant calculate how much they can comfortably afford to repay each month.
“For many in the market this will offer a welcome alternative to self-cert for employed applicants as not all advisers favour this approach. Mortgages plc’s affordability calculation has proven popular with both brokers and borrowers during testing and we’re now delighted to be rolling it out on a nationwide basis via a select number of our distribution partners.”
Simon Chalk, mortgage planner at Mortgage Portfolio Services, said affordability is essential but varying lender calculations can be a pain for brokers. “Affordability has to be a starting point.
“As long as sourcing software can understand and interpret the differing lender calculations, it’s a good thing. The downside is with affordability the broker can only give a judgement on which lender will accept a client. Income multiples are more straightforward,” he explained.
