Changes to Furlough – From the 11 January, we will be improving our loan to value to 80% for customers on furlough.
So what does this mean?
For lending at or below 80% LTV, we will assess based on the customers current income where they are on/or have recently been furloughed or had any COVID-19 related deductions from their salary/income. This will need to be supported by a letter from the employer to confirm the terms of their furlough or changes to pay, the date they return to work and confirmation of their pay at this point. For self‑employed income this includes any SEISS grants received in the last 6 months.
For full details please refer to our Mortgage Lending Criteria Guide.
Happy New Year Look Back at 2020 – reflecting on a challenging year us all, here are just a few highlights of our criteria from last year:
90% LTV residential mortgages
Buy to Let – reduced our 5 year fixed stress test to 4.5% at 140% of the mortgage interest amount calculated and increased our maximum age to 85
Enhanced our contractor and fixed term contract worker policy
We now use 50% Bonus/Commission/Overtime from the last year
Support for customers with a less than perfect credit profile
Expanded our list of accepted suitable security to include:
o Properties built by Modern Methods of Construction (MMC)
o Properties above, or adjacent to commercial premises
o Listed Buildings – Grade I, II* and II (A, B and C in Scotland)
Reduced the minimum portfolio value required for investment income to £250,000