Lenders taking risks in stagnant market

Mortgage lenders are being forced to take greater risks as property transactions slump because buyers cannot afford sky-high prices. Nick Morrey from mortgage broker Charcol, said lenders cannot cut lending margins further so are allowing higher income multiples, lending at higher loan-to-values or easing affordability checks. Mortgage broker Trussle's CEO Ishaan Malhi added that lenders are targeting more non-traditional borrowers such as the self-employed, while some are accepting alternative forms of income, such as rent payments, lodgers and state benefits.

Sunday Express (30/06/2018)