As previously communicated our Premier flexible lending policies pilot ended on 31 March 2016.
We’re pleased to confirm however that with immediate effect the below enhancements will now be available on an ongoing basis for both Premier and Wealth customers.
What are the changes?
LTI
We have increased the maximum income multiple for applications from 5x to 5.5x for residentialRepayment Loans ONLY (Please note that this is not available for Interest only or Part and Part and customers must meet the Premier gross annual income threshold of £75,000 for individuals or a Wealth customer). Our affordability calculator will shortly be amended to incorporate this change.
Bonus
Currently we limit the annual bonus used in affordability, in-line with basic income. However, for individual customers earning more than £150,000, this cap will no longer be applied for residential applications, but there will continue to be a 50% haircut on their two year average.
Example
Customer salary is £150,001
Average two year bonus is £500,000, after 50% haircut applied = £250,000
Non Premier/Wealth customers: Income for affordability = £300,002 (The bonus is capped in line with salary = £150,001 plus basic salary)
Premier/Wealth customers: Income for affordability = £400,001 (Uncapped bonus of £250,000 plus basic salary)
What do you need to do?
If you receive a DR98 code or a DR18 code where the basic income is above £150,000 these cases can be referred to our specialised underwriting team:
For cases under £600,000 this will be via Lending support on 0333 202 7590 option 1
Or, for cases above £600,000 this will be via HVLT on 0333 202 7590 option 3
The underwriting team will assess each case individually, and support a full submission if the application meets the criteria.
Please ensure that when inputting the application in to MAX that you incorporate the Premier Relationship manager or Private Banker details (if known) and that you have the full income details and verification needed to support the application when contacting the team. The process for all other SD and DR codes remains unchanged.
