We are delighted to report that gross lending this year is on target to exceed last year’s record level of lending, and to build on this continued success we have made a significant number of changes to existing policy to further strengthen our lending proposition.

New Improved Lending Criteria

  • Up to 4 incomes/4 applicants accepted: We will now consider all applicants incomes when accessing affordability in these circumstances. The income multiple applied is 4.49x highest two salaries +1 +1. (Maximum 90% LTV – MIG limits apply)
  • Joint Borrower, Sole Proprietor: Previously we would only consider one occupant and one parent to support mortgage requirements. We will now consider cases which include joint occupants, supported by one or both parent(s) of either applicant. Applications supported by siblings are not accepted. The maximum age of the occupying applicants is 35 years old. All income will be considered when accessing affordability, subject to the following LTI limits:
    • Up to 90% LTV – 4.49x highest two salaries +1 +1
    • Over 90% LTV – 4.49x highest two salaries
  •  Lending in Retirement: Applications on our standard later life range are now accepted up to age 95 years (maximum 25 year term will apply). No maximum term is applied on our Retirement Interest Only (RIO) products.
  • Pension: We can utilise income from pension pots that are not currently being drawn, subject to receiving confirmation from their pension provider of the value and level of drawings that they are entitled to withdraw should they so wish.
  • Newly Qualified Teacher (NQT): We will now accept applications from NQT during their initial 12 month contract period
  • Zero Hours and ‘Gig’ Economy Contracts: We will accept applicants on zero hour contracts where they can demonstrate a minimum 12 month track record of regular employment and earnings.
  • Second Income for Self-Employed Applicants: We will now accept self-employed earnings as a secondary income (2 year track record required). 100% of this income will be considered when accessing affordability.
  • Probationary Period: We no longer require customers to have passed a probationary period prior to completion. Please note, if your client has changed careers or is starting their first employed role, a minimum 2 month employment within the new position may apply – teachers, professionals considered within 2 months on a case by case basis.
  • Foster Care: 100% of this income is accepted, subject to client providing proof of 12 months (regular) income. Letter from local authority stating amount paid per child over the previous 12 months or 12 months bank statements required to evidence earnings.
  • Capital Raising: accepted for any non-commercial reasons (75% LTV), subject to a maximum £25K, or 10% of the property value (whichever is lower).
  • Buy to Let Maximum Loan: Our maximum loan size for Buy to Let applications has been increased up to £950K. Revised loan to value restrictions are; £700K – £950K available up to 50% LTV and £500K to £700K available up to 60% LTV.