We’re getting in touch to tell you that we’ve updated the lending policy for both our Prime and Near Prime mortgages — these changes come into effect from 13th October.

Not only have we simplified the criteria for all of our products to make your life easier, but we’ve made some changes that open up the Near Prime range to even more people than before. We hope you’ll take a few minutes to take a look at our update.

In addition, we’re also making some revisions to our mortgage pricing, which we’ve also detailed in this email.

Lending policy updates
Here are the key changes we’ve made to our lending policy.
Near Prime criteria changes
•Maximum of 2 missed payments permitted per application on any item of credit in the last 12 months (previously no missed payments permitted in the last 6 months)
•Unsatisfied default limit per applicant will be increased from £500 to £1,000
•Four defaults permitted per applicant over the last 3 years
•Unsatisfied CCJ limit per applicant will be increased from £500 to £1,000
•Four CCJs permitted per applicant over the last 3 years (previously 6 years)
Find out more about our Near Prime mortgages
Affordability changes for Near Prime and Prime
•Reintroduction of variable income to start accepting 50% of all bonus, overtime and commission
•Guaranteed allowances reinstated to 100%
•Other general improvements that should allow us to offer the loan amount required by your customers
Prime criteria changes
•An uplift in the maximum loan for 95% LTV mortgages from £300k to £500k
•One satisfied or unsatisfied default permitted in the last 3 years (previously 12 months)
Find out more about our Prime mortgages
These new changes to our lending policy will come into effect from the 13th October — you will be able to find updated lending criteria and Prime/Near Prime rate tables on our Digital Mortgages website.
Mortgage pricing updates
We will also be making some changes to our mortgage pricing — these will also be going  live on the 14th October. You can find detailed below:
Near Prime products
•Special offer rates now available:

•Two-year, fixed-rate, 60% LTV — priced at 2.45% with no product fee
•Five-year rates start from 2.79% at 60% LTV
•Free valuations for purchase mortgages and remortgages
Prime products
•Expanding products available at 80% LTV
•Reducing rates on 85% to 95% LTV:

•Two-year 85% LTV rates reduced by up to 0.50% and five-year 85% LTV by up to 0.30%
•Two-year 90% LTV rates reduced by up to 0.15% and five-year 90% LTV by up to 0.10%
•Two-year 95% LTV rates from 2.69% and five-year 95% from 2.99%
Early repayment charge (ERC) profiles
•Changes to our 2-year ERC profile
•Changes to our 5-year ERC profile
Please note: the information in this email is embargoed until the above time.
Want to find out more?
If you have any questions about these changes, don’t hesitate to get in touch with our TBDMs by email at support@digitalmortgages.net or by phone on 0333 399 0055 (9am–5pm, Mon–Fri). Alternatively, you can contact your RDBM for information.
Thanks,
Atom