Here is the latest update from the Principality Building Society. For full details download/ see their latest product bulletin here. Criteria information is available here. Access these product via our direct to lender mortgage club and get the benefits of payment on completion.
Principality Announcements
we’re enhancing how much your client can borrow
As a response to broker feedback, we’ve been working hard to improve affordability for your clients.
What this means for you
From Monday 10th November, we’re changing how we assess your client’s affordability.
Improved affordability for your clients*
Based on internal modelling and testing, on average, potential homebuyers, including first-time buyers, may be able to borrow approximately 20% more.
Introducing a new online affordability calculator
To reflect these changes, we have launched a new online affordability calculator on our website.
We are also working with sourcing platforms to ensure you see the same figure across all channels when assessing how much your clients can borrow.
Important: When adding your clients shift allowance, please add these details to the box labelled car allowance.
For cases submitted before these changes
If you update your application, the case may decline on affordability.
However, we will apply the originally submitted affordability to your case and honour the new affordability amount if required.
Where we offer an enhanced Loan to Income (LTI) ratio (over 4.49)
A minimum household income of £40,000 is now required, with a minimum loan amount of £180,000.
For clients using enhanced Loan to Income (LTI multiples)
For 5x LTI for medical workers and 5.5x for first-time buyers & newly qualified professionals applications, please continue to contact the desk team who can run an affordability calculation for you.