20 August 2007
Platform launches affordability based lending
model
Platform, the intermediary lender of Britannia, is
delighted to announce the launch of its new affordability-based
lending model. From today, Platform will change from an
income-multiple based approach to a new debt to income ratio-based
model which offers a more accurate calculation of a borrower’s
ability to repay.
Affordability considers income and financial commitments rather
than purely a multiple of a borrower’s current salary and the
equity in the property (the Loan to Value position).
The new model will apply to Platform’s products across the range
(except Buy to Let) with immediate effect for all new applicants
and will be supported by an affordability calculator which is now
live on Platform’s website (www.platform.co.uk). The calculator is designed to
be quick and easy to use, and requires just a few simple facts to
calculate the indicative maximum loan amount. It does not
require specific personal details and there is no need to produce a
KFI first.
Phil Riches, Divisional Sales Manager at Platform said: “As a
responsible lender we believe it makes more sense to look at a
mortgage applicant’s full financial circumstance, including money
they owe, financial commitments and income, and to lend based on
what they can afford to pay back each month. We also believe
this will help homeowners by giving a more scientific calculation
of what they can afford resulting in less people getting into
financial difficulties and mortgage payment arrears.
“Our new affordability calculator will help our clients to
identify the most appropriate product for their customers by
allowing for customer-specific considerations to be taken into
account, such as the number of dependants and outstanding
commitments. It also supports Platform’s continual focus on
treating customers fairly.”
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