How much could your client borrow?
Here is a simple chart to indicate the maximum potential borrowing amount based on gross income, assuming no credit commitments and average household expenditure.
Please take the lower of either pre-retirement or post-retirement income *
We look at more relevant financial issues than just age
No cap on employment or self employed income
We accept plausible income into retirement
*For joint borrowers on Retirement Interest Only cases, affordability is assessed on the lowest income to ensure that the loan remains affordable on death of one of the borrowers (we can look at Term assurance to bridge this gap). For Fixed Term Mortgage cases, the joint income can be used.
Affordability case study
Mr & Mrs Jones would like to borrow £150,000 to pay off their existing interest only loan
Mr Jones currently earns £32,000 per annum but plans to retire in three years’ time when his income will reduce to £27,500. Mrs Jones is currently retired and has a retirement of income of £22,500. Using the calculator, we can see that LiveMore would be able to offer them a loan of £173,000 (subject to full underwriting).
The above is just an indication. To get a more accurate borrowing amount for your clients, please use the calculator on our broker portal