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Improvements to our lending criteria

28 October 2021

We improved our lending policy on Thursday 28 October, to give customers more choice and greater access to our mortgages. We:

  • Increased our new-build maximum LTVs
  • Simplified our bonus policy
  • Increased the maximum term at 95% LTV

New-build LTV increases

We’ve increased our maximum residential LTVs to 90% for new-build houses and 80% for new-build flats.

For Shared Ownership, we can still lend up to 95% of the share of the property being purchased, including on new builds.

For LTVs up to 85%, we’ll accept builder’s cash incentives of up to 5% without impacting the loan. Where the LTV is greater than 85%, cash incentives must be deducted from the purchase price.

Simplified bonus calculation

Affordability calculations using annual, six-monthly or quarterly bonus payments for employed applicants are now based on the latest year’s bonus, at a rate of 60%. We no longer require a bonus to have been received after 2 December 2020, and we only need to use a two-year average (or more recent year if lower) where the variable pay exceeds basic income.

Maximum term is now 35 years

We’ve increased our maximum term at 95% LTV to 35 years, which means the maximum term for all of our mortgages is now 35 years.

Changes to selected mortgages

We’ve also made changes to the following mortgages.

Exclusives

  • Selected 75% LTV fixed rates have been withdrawn.
  • 75% LTV 5 Year Fixed Rate have been increased to 1.45%.

Core

  • Selected 65% and 75% LTV fixed rates have been increased by up to 0.25%.
  • 85% LTV 3 Year Fixed Rate with £995 fee have been withdrawn.

Product Transfer

  • Selected 65% and 75% LTV fixed rates have been increased by up to 0.21%.
  • ERC-free tracker rates have been withdrawn.

If you've got any questions, just get in touch with your Business Development Manager or dedicated Regional Service Team

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