To keep you up to date with the changes going on in our business area, here’s what has changed lately.
- Legal charge on main residence
Where an applicant is using sale of main residence as their repayment vehicle, there must be £400k equity available in any properties based within the M25. This is reduced from a previous requirement of £500k.
- RIO retired status
Applicants do not need to be retired at the point of application.
- Lending in retirement: life policy for mortgage shortfalls
For death stress calculations, where a life policy covers the shortfall this will be accepted as proof of the mortgage remaining affordable to the remaining party.
- Employment & income criteria
Employed applicants will now only be required to provide an up to date P60 and 2 months’ payslips with an application.
- Zero hours employment
Zero hours contracts within the tourism sector will now be considered as per standard zero hour contracts policy.
- Continuous employment
A minimum continuous employment history of 12 months will now be accepted.
- Fixed term contractors
There is no longer a requirement for 2 years employment history. Applicants must have a minimum of 6 months remaining on their current contract.
- One bed flats
Second time ownership one bed flats will be considered as standard on our residential product range. New build one bed flats are restricted to 85% LTV.