we are reintroducing first time buyer (FTB) purchase products at 85-90% loan to value (LTV). The products will initially only be available where the following criteria is met so that we can manage our service proposition whilst supporting FTB’s and continue to lend responsibly.
- FTB only (at least one applicant on a joint application must be a FTB)
- New build properties are not included
- No other ‘schemes’ can be selected
- An enhanced credit score requirement will be applied to any applications on these products
- A maximum 4.49x loan to income (LTI) cap will be applied as part of our affordability assessment
- Maximum loan amount of £500,000
- Commitments stated as to be repaid upon completion – any current credit commitments will be deducted as ongoing in our affordability calculation even where declared as ‘to be repaid’. The loan amount must be affordable with these commitments deducted as remaining
At Decision in Principle (DIP) stage if the above criteria is not met you will receive a Corrective Action message that will advise you that based on the customer’s circumstances the LTV would need to be reduced to proceed.
If the loan amount is increased above 85% LTV on any existing pipeline applications, to switch to these new products, the application will be subject to the above criteria. The Mortgage Product Guide PDF on our website which will be updated by 8 December, will include details of the criteria applicable to these products. If you have any queries please contact your Business Development Manager.
