Source: Mortgage Introducer —
A recent study has shown that the rising cost of energy could lead to thousands of applicants missing out on mortgages due to its impact on their affordability.
Data analysis by Mortgage Broker Tools (MBT) has found that while three in four mortgage enquiries currently have options where the loan size requested is considered to be affordable, this could drop to around 65% once lenders have included rising energy costs in their affordability calculators.
According to the MBT Affordability research platform, 75% of mortgage enquiries were affordable in August, but with Ofgem saying that annual energy bills are expected to go up by £1,578 for the average household, this increased cost could reduce the average loan size available to mortgage borrowers by £7,125.
