Interest rates at 0.25% versus 0.5% - affordability question

[Erudite geezer]

Earlier this year, when interest rates were 0.5% I got a mortgage agreement in principle, showing affordability and how much the lender would lend.

The house purchase fell through, but I am now looking to purchase once again.

One question......now that interest rates are 0.25%, all other things equal, should, theoretically, the same lender be willing to lend me quite a bit more, or not?

What could I expect?

[Some Gump]

I'd expect not much. I've just remortgaged and they wanted to safety test affordability on a 2% rise. We all know it won't be 0.25% for 21 years...

[Jockman]

Just because the BOE interest rate falls does not mean mortgage rates will fall. Mine did because I'm on a tracker linked to it but many did not.

[eliot]

If you failed affordability at .5% then wondering if you will pass at .25% is sort of missing the point.
Yes I bought my first house in 1990 at the age of 19 with a mortgage that hit 15%

[Sarnie]

Erudite geezer said:

Earlier this year, when interest rates were 0.5% I got a mortgage agreement in principle, showing affordability and how much the lender would lend.

The house purchase fell through, but I am now looking to purchase once again.

One question......now that interest rates are 0.25%, all other things equal, should, theoretically, the same lender be willing to lend me quite a bit more, or not?

What could I expect?

No is the quick answer...................

[Erudite geezer]

eliot said:

If you failed affordability at .5% then wondering if you will pass at .25% is sort of missing the point.
Yes I bought my first house in 1990 at the age of 19 with a mortgage that hit 15%

Did not fail affordability. The bank was willing to lend 4.5 times my income.

[Evolved]

eliot said:

If you failed affordability at .5% then wondering if you will pass at .25% is sort of missing the point.
Yes I bought my first house in 1990 at the age of 19 with a mortgage that hit 15%

Re read his post.

[eliot]

Evolved said:

eliot said:

If you failed affordability at .5% then wondering if you will pass at .25% is sort of missing the point.
Yes I bought my first house in 1990 at the age of 19 with a mortgage that hit 15%

Re read his post.

Ok fair enough - I have now.
I dont see why they would lend you more now though.

[Zigster]

Putting some numbers around it might help. How much are you hoping to borrow, how long for, what rate of interest were you expecting to pay?

I've got a tracker repayment mortgage with something like £140k/12 years remaining. Interest rate is base+0.84%. Monthly repayments were something like £1,015 before the base rate decrease and almost exactly £1,000 now (before someone gets their calculator out, the numbers are broadly correct rather than exactly).

So a 0.25% fall in interest rates is unlikely to make much difference to monthly repayments, certainly not to the extent that it would materially change how much you could afford to repay.