Larger loans are available to customers looking to
find a mortgage, according to an expert.
Increased confidence and a "stable"
mortgage market has meant that many companies are offering larger loans, according to Lisa Taylor of Moneyfacts.
Buy-to-let and residential
mortgage lenders have begun to revise their rental/income criteria over the last month, increasing the availability of their products to a wider audience, implying confidence in the market.
The changes should help
first-time buyers and people looking to move up the
property ladder, but larger loans are leading to a large proportion of a consumer's income being "eaten up" by mortgage payments.
Ms Taylor said: "Worryingly, recent figures show that, on average, a massive 43 per cent of consumers’ disposal income is spent on mortgage payments alone and with suggestions that household bills and taxation will represent a larger slice of disposable income than
mortgages, what are people to live on?"
"With increasing flexibility in the mortgage market and
lenders stretching their criteria, consumers should not always go for the absolute maximum they are offered.
"They should strongly consider the impact it will have on their disposal income and ultimately on their lifestyle."
However, recent figures from the Bank of England suggest that mortgage lending is slowing in the UK, with mortgage approvals down to 106,000 from 114,000 in April.
