Following feedback from the market, we have made the following amendments to our lending policy:
Up to Four Incomes/Applicants Accepted
We will now consider up to four applicants incomes when assessing affordability in these circumstances. The income multiple applied is 4.49 times for the two highest salaries, and one times for the lower two salaries. This is available up to a maximum of 90% loan to value, and MIG limits will apply.
Joint Borrower, Sole Proprietor
We will now consider cases which include joint occupants, supported by one or both parent(s) of either applicant. Applications supported by siblings will not be accepted. We do apply a maximum age of the occupying applicants of 35 years old. All incomes will be used to assess affordability, subject to the below loan to income limits:
- Up to 90% LTV: 4.49 times will apply to the highest two salaries, and one times for the lower two salaries.
- Over 90% LTV: 4.49 times will apply to the highest two salaries.
Lending in Retirement
Applications on our standard later life range will be considered up to age 95 years (please note, a maximum 25 year term will apply). There is no maximum term on our Retirement Interest Only (RIO) products.
We can use income from pension pots, that are not currently being drawn. This is subject to receiving confirmation from your client's pension provider of the value and level of drawings that they are entitled to draw, should they wish to.
Newly Qualified Teacher (NQT)
We will now accept applications from NQT's in their initial 12 month contract period.
Zero Hours and 'Gig' Economy Contracts
We will accept applicants on zero hour contracts, where your client can demonstrate a minimum 12 month track record of regular employment and earnings.
Second Income for Self-Employed Applicants
Self-employed earnings will now be accepted as a secondary income. Please note, a two year track record will be required, and 100% of this income will be considered when assessing affordability.
We no longer require your client(s) to have passed a probationary period prior the the completion of a mortgage. However, if your client has changed careers, a minimum two month employment within a new position may apply. Teachers and professionals within two month employment will be considered on a case by case basis.
Subject to your client providing proof of 12 months regular income, we will accept 100% of this income. A letter from the local authority, stating the amount paid per child over the previous 12 months, or 12 months bank statements will be required to evidence earnings.
We will now accept capital raising for any non-commercial reasons, up to 75% LTV. This will be subject to a maximum of £25K, or 10% of the property value (whichever is lower).
Buy to Let Maximum Loan Amount
Our maximum loan size for Buy to Let applications has increased up to £950K. Restrictions are:
- Up to 70% LTV: £500,000
- Up to 60% LTV: £700,000
- Up to 50% LTV: £950,000