We have made some temporary changes to our mortgage lending criteria, which you need to be aware of. On Thursday 2nd July we changed the way that we assess affordability for some types of income, to ensure that customers get the right mortgage for their current circumstances, in light of COVID-19.
Key Criteria Changes
If furloughed, we will assess affordability by only using the income that is currently being received by the applicant. We will also require written confirmation directly from the applicant’s employer confirming the date they will return to work, and whether their contractual arrangements will change.
Variable income will only be included for affordability purposes if the applicant can evidence that it is currently being paid and has been regularly and consistently over a prolonged period.
We will calculate affordability for self-employed applicants by taking an average of the most recent 2 years figures (or latest year if lower).
The affordability calculator on our website has not been amended to reflect the above changes, please bear this in mind when using it to calculate your self-employed applicants affordability.
Residential mortgage products:
The following Residential product rates are increasing:
- rates across our 65% and 75% LTV fixed rate range will be increasing by up to 0.06%
- rates across our 80% LTV fixed rate range will be increasing by up to 0.05%
Buy to Let mortgage products:
The following Holiday Let product rate is increasing:
- product code (14559), 75% LTV 5 year fixed rate will increase from 3.75% to 3.96%
The following Holiday Let products will now include a product fee:
- all 60% and 75% LTV 2 year fixed rate products will be adding a fee of £895
- all 60% and 75% LTV 5 year fixed rate products will be adding a fee of £1,395
The range will hold November end dates.
All previous product codes will be removed from sale on Monday 13th July at 8:00pm.