There has been a lot of talk of how the Changes to the Qualifying Rates on Conventional Mortgages ( greater that 20% Down) will affect people.
In Simple terms it will Reduce your Purchasing power of 18-20% on this type of Purchase even though you are putting more Equity in the Deal.
The one not so talked about fact is your Current Lender will not have to be as competitive at Renewal time if you have more than 20% equity in your Home. The reason for this that renewals will not have to qualify under the new Guidelines, but if you don’t like there renewal Rate and want to shop around, you may not qualify for your current property under these new guidelines, and will be forced to remain at that Lender at there Rates.
Now More than ever Professional Mortgage Advice provided by a Third Party and not an Agent of the Lender is Crucial.