What’s changing?

Following a review of our affordability assessment, from Wednesday 13 October, your clients’ rental property income must be able to cover the mortgage amount requested, including any fees that are added to the loan. The total amount of the loan plus any fees added must not exceed 80% LTV.

The following fees are typically added to the loan, and will now need to be covered by the ICR for the selected product:

  • Product fee – see individual product details
  • Funds transfer fee – £25
  • Property insurance contingency fee – £25

If your clients would prefer to pay these fees upfront rather than adding them to their loan amount, please let our underwriting team know prior to the mortgage offer being issued.

Any pipeline applications submitted prior to 13 October will not be subject to the new calculations.

We will be updating our online calculators to take this into account, so you can be sure that your case fits before you submit it. The new calculators will be launched at the same time as the change, and you’ll be able to find them in the intermediary portal and on our website.

Any questions?

If you have any questions, please get in touch with your Regional Sales Manager, who will be happy to help you. You can find the contact details of your RM using our online postcode search.
Find your Regional Manager