Understanding affordability

Your client may be able to borrow more than you think.

We calculate affordability based on the interest cover ratio (ICR) and stress rate.

Our ICRs may be higher than some on the market. But differences in our stress rates (reduced for Like for Like Remortgage and 5 year fixed products) mean we may be able to lend your clients more than other lenders.

Here’s an example of how we compare where your client has a monthly rent of £1,000 and has chosen a 5 Year Fixed Rate product with a rate of 4.50%:

  The Mortgage Works Lender B Lender C
Stress rate 4.50%
(Product Rate + 0.50%)
(Product Rate + 1.00%)
ICR 160% 145% 145%
Maximum loan £166,666 £165,517 £150,470

Give our ‘how much can be borrowed’ calculator a try to see the maximum loan amount we could lend to your client.

Use our how much can be borrowed calculator