We’re happy to tell you about some positive changes that we made it easier for you and your clients to work with us. We’re
- Removing both the £10k minimum annual bonus threshold and the annual bonus capping in line with salary for affordability purposes.
- Increasing our New Build house purchase LTV to 90%.
- Increasing our Shared Ownership LTV to 95% for purchase applications and 90% for like for like remortgage applications.
Annual bonus change
The annual bonus changes will apply to residential and buy-to-let mortgages and mean you’ll be able to use 50% of all your client’s sustainable annual bonus for affordability. Income multiple policy will still be capped in line with basic annual income, plus allowances.
You can find more information about this change in the attached FAQ.
New build LTV increase
We’re increasing the LTV from 85% to 90% for mortgages on New Build houses.This is for loans up to and including £500,000. Flats and maisonettes will stay at the current maximum LTV of 85%.
Shared ownership LTV increase
We’re increasing the LTV criteria on our Shared Ownership mortgages (for loans up to and including £500,000), which means the maximum cap on purchase mortgages will rise from 85% to 95%. We’re also increasing our cap on like-for-like remortgage applications, from 85% to 90% LTV. For new-build shared ownership properties, the new-build LTV policy will apply.
What do these changes mean for you?
All cases submitted from Tuesday, 6th March, will be subject to the new criteria as above, even if they were created on MAX prior to this date.
As these are policy amendments, both MAX and the affordability calculators have been changed, so there is no change to your normal process.
Further Information
Take a look at the our FAQ for more detail on the annual bonus change, or contact your Barclays Support Team.
