A new mortgage calculator has been launched which aims to help people find out which lender will lend them the most money.
The new tool from Dwell provides real-time estimates on what a customer could borrow from the top 10 lenders.
One problem for borrowers looking for a mortgage is that lenders will often lend different amounts to different people.
As mortgage calculators don’t take this into account, anyone applying for a mortgage will only get a quote based on crude estimate of what they can borrow from their salary.
This process takes less than two minutes to complete, with the difference between the lowest and highest sums large enough to make a material impact on a customer’s options.
In the past, mortgage lenders would base the amount you could borrow on a multiple of your income.
However, since the Mortgage Market Review this is no longer the case, meaning simple calculators offered by the market are not necessarily accurate.
Dwell said the difference between the highest and lowest amount can be as much as £150,000.
CEO of Dwell, Pradeep Raman, said: “What often isn’t explained and certainly isn’t clear to many mortgage applicants is that each lender has a different attitude to risk and will lend people very different amounts. This is a huge issue as it can lead to people missing out on the properties they hope for.
“Applying for a mortgage is an exceptionally daunting task, but isn’t helped by the fact that people are presented with lots of numbers that ultimately don’t show what lenders will actually be willing lend. Borrowers want to see if they’re eligible as well as it being affordable.
“The mortgage world has been transformed in recent years and we’re looking forward to launching some new features over the coming months to make this process even quicker and simpler.”
The calculator can be found at: www.universalmortgagecalculator.com
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