Lenders "willing to fight for business beyond rates" as Santander updates affordability calculator following NI reduction

This is a great example of how competitive the UK mortgage market is. A relatively small change in the tax burden on households is immediately used to drive what will be a relatively modest boost to people's affordability because it gives lenders who can do it quickest a competitive advantage over those that need a little more time to integrate these changes into their affordability models. It won't translate into a huge shift in people's borrowing capacity, but it will certainly help and shows that banks and building societies are keen to lend and are willing to fight for business beyond simply interest rates.

Another small win for mortgage borrowers with a boost to affordability. The small increase in net pay to people's pay packets will mean that, across several lenders, there will now be scope to borrow a little bit more money than people could do previously. Any additional tax cuts in the Budget will only help with affordability and help increase consumer confidence.

Most lenders work out what people can borrow on an affordability basis given their circumstances. Tax reductions will mean people have more money in their pocket, helping them to afford more on their mortgage. Although one lender alone updating affordability is unlikely to make a huge difference, on a marginal gains basis if lots of lenders make small changes, added together this could make a big difference in the market.

Lower taxes and national insurance should help with mortgage affordability. Banks and building societies are very keen to lend in this slow market, but they also must factor in fiscal measures and borrower outgoings when considering applications. But with rates falling sharply, base rate cuts expected before long, and food and energy prices rising less quickly, there's every reason to be optimistic

While any help is appreciated in this cost of living crisis and housing affordability crisis, affordability cuts are like taking a knife to a gunfight, way too little to make a serious impact. Yes, it makes a slight difference but not enough to people's affordability to make an impactful difference. With most things at the moment, It is always too late, or too little, or both. And that is the road to disaster we currently are on when it comes to housing.

Improved affordability will always help the market. The past year or so has left many people, especially first-time buyers, with real disappointment on their affordability. If affordability is raised, it will help them get that first foot on the ladder. Also, it will mean that fewer mortgage applications fail due to affordability as long as people aren't scrambling for every last pound. The more tax cuts, the better.