April Mortgages pushes affordability to 7x income on longer term mortgages: brokers deliver their verdict

This is a bold move by April Mortgages to push their affordabilty model that bit further than most of the High Street, using the longer term fixed rates to support this extra borrowing opportunity. This is open to all types of borrower, including first-time buyers and the self-employed who are traditionally left out of these schemes. Yes the rates are more than average high street alternatives, but there are plenty of other benefits with their product range, and that stretch might just make the impossible purchase happen.

April Mortgages' launch is exactly the kind of innovation the UK market needs. Offering up to seven times income with long-term fixed rates is a bold and welcome move that will open doors for many aspiring homeowners who have been locked out by traditional affordability measures. The real strength of this product lies in its balance between opportunity and safety: borrowers gain enhanced borrowing power while retaining the flexibility to move home and overpay without penalties, a critical feature often missing from longer-term deals. However, borrowers must go into long-term fixes with their eyes wide open. While fixing for up to 15 years offers invaluable payment security, it could mean missing out if interest rates fall in the future. That said, in today's unpredictable market, many will value certainty over speculation. April Mortgages should be applauded for bringing fresh thinking and consumer-centric product design into the sector.

A welcome shake-up in the mortgage market arrives as April Mortgages stretches affordability to 7x income for those committing to longer-term fixed rates. This innovative broker-exclusive offering could be the lifeline many have been waiting for, particularly as property prices continue to outpace earnings growth. While traditional lending wisdom might raise an eyebrow at such multiples, the longer-term commitment provides a stabilising counterbalance to the increased exposure. Yes, borrowers will pay a premium on rates compared to high street alternatives, but the flexibility to move home without penalties and the opportunity to make overpayments offers valuable breathing room in this stretched arrangement. As with all financial decisions, borrowers should weigh the certainty of fixed payments against potential future rate drops – but for many, this could transform an impossible dream into bricks and mortar reality.

I think lending up to seven times salary is pushing the limits of sensible borrowing. April Mortgages has clearly had the policy signed off by the regulator, so they seem to be comfortable with the income stretch but there is an ongoing concern about affordability and responsible lending for most people, particularly when their lifestyles or expenditure changes in the future. I think a seven times income ratio looks pretty scary at current interest rates, even if some of the mortgage is on an interest-only basis. It will be challenging to remortgage away from April if you have a seven times salary income multiple, unless the borrower receives a pay rise or opts for the longer-term fix, so they don't have to worry about it.Ultimately, this product is a sign of the times where affordability is such a big issue for many people who want to get on the property ladder.