Principality provides affordability boost for buyers.
In this article
As a response to broker feedback, we’ve improved how we assess affordability and how much a potential client can borrow from Principality.
On average, based on internal modelling and testing, homebuyers, including first-time buyers, may be able to borrow approximately 20% more.
What this could look like for your clients
We've put together fictional example scenarios showing how this could benefit a potential client using our updated affordability calculator.
| Case Study: New Purchase | Previously | New (Indicative) |
|---|---|---|
|
A married couple with one child are purchasing a new home.
They have a combined income of approximately £65,000 with approximately £2500 in outstanding debt commitments.
Their purchase is for a standard residential property over a 23-year term. |
£259,661 | £291,903 |
| Case Study: Remortgage | Previously | New (Indicative) |
|---|---|---|
|
A married couple with two children are remortgaging their current home.
One applicant is a sole trader earning £32,000 salary, the second applicant works part time with a £12,000 salary.
Their remortgage is on a standard residential property over a 35-year term. |
£183,146 | £197,560 |
Introducing our new online calculator
We’ve been working hard behind the scenes to enhance the online experience with Principality Intermediaries.
As part of our program of online improvements, we have released our updated online residential affordability calculator.
The updated affordability calculator will provide clarity when assessing your client’s affordability. From now on, the calculation will be consistent across our website and our MSO platform. Sourcing platforms are also being updated.
Important – Enhanced Loan to Income (LTI) multiples
Where we offer an enhanced Loan to Income (LTI) ratio (over 4.49) a minimum household income of £40,000 is now required, with a minimum loan amount of £180,000.
For any applications using income multiples including 5x LTI for medical workers and 5.5x for first-time buyers & newly qualified professionals, please continue to get in touch with the desk team who can run an affordability calculation for you.
A word from our National Intermediary Manager, Helen Lewis
National Intermediary Manager Helen Lewis highlights the benefits of our updated affordability calculator and how it will improve brokers’ experience with Principality Intermediaries.
“The change to our affordability model provides brokers more flexibility when placing business with Principality. Alongside this, the updated online affordability calculator is the latest addition to help enhance the digital experience for brokers providing a user-friendly experience and clarity that the amount calculated is correct and consistent”.
- Broker news