Alliance & Leicester changes mortgage calculations

05 September 2005
Alliance & Leicester has sought to change the way it offers mortgages, introducing what it says is a more flexible approach.

Instead of using traditional income multiples to calculate suitability of borrowers the lender says it is now seeking to use more advanced affordability calculations.

Using a 24-hour a day service Alliance & Leicester is able to tailor its calculations to individuals, taking account of a greater number of variables such as individual monthly spending.

Alliance & Leicester's Mehrdad Yousefi welcomed the move: "Our new affordability calculator recognises that every individual has different financial circumstances.

"Whilst many affordability calculators are based on ‘average assumptions’ of customers’ disposable incomes according to region, age and number of dependants, Alliance & Leicester’s proposition takes this a step further and provides a more realistic and accurate decision based on the individual’s circumstances and then offers a maximum loan amount. For some customers this will mean that we can lend more."

The service has a strong online presence, and is capable of generating a fully credit scored decision in principle (DIP) online within minutes.

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