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.


  • Selected 75% LTV fixed rates have been withdrawn.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


  • 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  • 85% LTV 3 Year Fixed Rate with £995 fee have been withdrawn.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  • ERC-free tracker rates have been withdrawn.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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