Are Affordability Models Letting Down the Borrowers Who Need Them Most?

Lending appetite across the UK mortgage market is broadening – but not evenly, and not always fairly. That is the view of Amar Dhanota, Director and Senior Mortgage Consultant at London FS, who spoke to Mortgage Introducer as part of a wider International Women’s Day feature examining where lender risk models are failing borrowers.

Amar highlights that while improvements in affordability calculations and higher loan-to-value products have opened doors for some, borrowers with complex income structures remain routinely difficult to place. Limited company directors, professionals drawing income in multiple ways, and those who are asset-rich but income-poor often fall outside standard frameworks – not because they are poor credit risks, but because the models simply were not designed with them in mind. Borrowers who fall outside these frameworks can benefit from complex income mortgage advice that looks at the full financial picture.

Her central critique is that current affordability frameworks treat income and spending as static, when in reality people budget dynamically. Borrowers adjust their spending when mortgage payments rise. A volatile but strong professional income can represent a far safer lending proposition than a steady salary in a fragile industry – yet standard models frequently reward the latter. Until lenders develop smarter, more behaviourally-aware approaches to risk assessment, Amar argues that some of the most financially capable borrowers in the country will continue to need specialist advice to access the mortgage market at all.

Read the full feature on Mortgage Introducer.