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Product category: Mortgages / Housing
News Release from: Principality Building Society | Subject: Mortgages
Edited by the Insidemoneytalk Editorial Team on 26 October 2007

Principality launches affordability
calculator for mortgage applications

Principality, Wales largest building society, launches its new affordability model, which makes it easier for borrowers to calculate the maximum size of mortgage that they can afford to repay.

The model takes account of comparatively low interest rates in historical times and its increased flexibility gives credit worthy first time buyers a better chance of getting on the property ladder The calculator, which will be available from October 29, employs the more sophisticated affordability model rather than calculating simple income multiples

By looking carefully at an applicant income, expenditure and credit history, Principality's model ensures that the resulting mortgage offer is tailored to each customer's unique needs and ability to repay.Mick McGuire, Director of Business Development at Principality, said: This is good news for borrowers.

The model allows responsible borrowers, with good credit histories, to borrow sufficient funds to keep up with the large increases seen in house prices over recent years.

It will limit borrowing for those with weak credit histories and less disposable income.

We believe that affordability is the fairest way of calculating maximum loans and we are confident that our model allows responsible borrowing so that those seeking a competitive mortgage are able to calculate their repayments in direct relation to their individual circumstances.

By taking into consideration lifestyle, as well as income, Principality is better able to give borrowers the chance to afford to buy the home of their choice.

The online calculator is quick and easy to use.

It can be directly accessed at www.principality.co.uk.

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