higher than the typical maximum of between four and five times salary. While this would allow some lenders to buy a property they might have assumed was well out of their price range, it could also revive debate about the broker’s responsible lending practices.
However, these generous terms cam only be enjoyed by borrowers who take out one of Habito’s ‘fixed-for-life’ mortgages. Under this scheme, which was launched this year, customers can lock their monthly repayments at the same level for up to 40 years. Moreover, in order to qualify for this attractive deal, the applicant must work in one of the selected number of professions, including NHS clinicians, police officers, firefighters and teaches in the public sector, and must earn an annual basic salary of £25,000 or more.
Borrowers will need a deposit of at least 10 per cent to be eligible for the mortgages, on which interest rates start at 2.99 per cent. In the case of a joint application, only one person’s salary will be multiplied by seven, while for the other, the salary will be multiplied by five.
“Longer, fixed-rate mortgages mean that customers are completely protected against any threat of fluctuating interest rates, in a way that shorter fixes of two or five years mortgage deals don’t allow for,” Daniel Hegarty, the founder and chief executive of Habito, said. “As a lender that considers every applicant’s case individually, we’re confident that with suitable criteria in place, in the right circumstances, eligible customers can safely and securely boost their borrowing to buy the home that truly suits their needs and their life plans.”
