I am delighted to share some new changes to our lending criteria – please do take a few minutes to read and come back to me if you have any questions.
- Where the loan is up to 75% LTV and the applicant(s) is in an employment contract, we will accept at the most recent payslip and most recent bank statement for all bank accounts.
- Self Employed – For applications up to 75% LTV, 2 years accounts or SA302s/Tax Year Overviews may be accepted if appropriate.
Enhanced income multiples & minimum income requirement
In addition to the application passing our affordability assessment, we will allow an enhanced income multiple to be applied, where the following minimum income requirement is met:
- Sole application – minimum income requirement – £40,000 pa;
- Joint application – minimum joint income requirement – £70,000 pa.
Where an applicant is employed, the minimum income requirement is based on the basic gross salary only and does not permit overtime, bonuses etc. Where the applicant is self-employed, the minimum income is based on the most recent SA302 and Tax Year Overview. We will not accept projected income to meet a minimum income requirement.
Our enhanced income multiples are as follows:
Loan to Value (LTV)
Enhanced income multiple (single or joint)
Up to 80% LTV
Up to 85% LTV
Up to 90% LTV
Up to 95% LTV
LTV increased to 80%
Lending in retirement
Applications for lending in retirement may be allowed up to the age of 80 years where the mortgage is on a repayment basis, or 75 years on an interest only basis.
The maximum LTV for ‘lending in retirement’ is 70%.
New Mortgage Package wef 14.12.21
Please note the main changes are as follows-
- 2 year variable rate for Family Assist product improved
- 2 year fixed rate for Family Assist product improved
Last month the Society introduced a floored interest rate of 0.50% to all new discount variable rate products in our house purchase and remortgage range. We have continued to introduce this to any variable products amended in this package. The new products highlighted in red on the attached package will have a floor. Please amend your records accordingly and attach a note to these products that the interest rate payable will not go below a floor of 0.50% during the initial discounted period.
New Mortgage Package
We are extending the LTV limit on our Self Build product from 75% to 80%.
- 3 year variable rate for Self Build LTV now 80%
- 3 year variable rate for Self Build (Foreign Currency) LTV now 80%