Coventry BS changes to auto finance rules to add thousands to home loans – Mortgage Strategy
The Coventry Building Association says people with auto financing are now eligible to borrow thousands of home loans, rather than six months ago.
The move comes with the launch of the new “75’ Auto Registration” today and is more relaxed in the capacity assessment driven by the updated financial behavior authorities.
Mutual aid people say a single buyer – earning an average UK salary – would cut their mortgage by more than £18,000 if they had a car payment of £345.
But now, payments for the same car are only £5,000 off, allowing them to borrow an additional nearly £13,000 for homes.
The lender added that if they each had a £345 car loan, their maximum borrowing would be cut by £13,000 in March. Their borrowing will now be reduced by £5,677.
Jonathan Stinton, head of intermediary relations at the Coventry Building Association, said the change was “a big shift that gave borrowers more flexibility to balance lifestyle choices such as car ownership with their home purchase goals.
“That is, car payments still affect how much money customers can borrow, rather than past deal-breakers.
“Agents can help clients navigate these changes to make smarter decisions, especially when redesigning or adjusting terms.”
