Easter is coming early from Saffron with a raft of criteria enhancements being introduced with immediate effect. I am really pleased we have been able to make this positive impact to our proposition and taking another step forward in embracing different.
Please can you promote this to your members in your usual newsletters, here is a summary of our changes:
Professional Income Boost
- Increased the maximum loan to income at 80% LTV to 6x (5.5x to 90% LTV)
- Increased the maximum time since qualification to 10 years
- Added – Investment Bankers, Management Consultants as standard & Mortgage Brokers to the list of acceptable professionals
Foster Income
To support our focus on helping borrowers with non-standard income sources, we can now accept foster income subject to the following:
- 100% of foster income can be used if the applicant has a minimum 1-year track record of fostering, with 3 months remittance forms required to evidence the foster income
- Last three months remittance forms showing standard foster income payments used as primary income, excluding any ad hoc payments for clothing etc and/or any supplementary payments for additional needs such as disability
- Foster children must be listed as dependents.
- Minimum age of foster carers aligned with employed income up to age 75
VISAs
Where the LTV exceeds 75% at least one applicant must earn £75k, but in a joint application where one applicant does not meet the £75k requirement, but the total household income (allowable) exceeds £100k then UW have discretion to consider the case
Concessionary Purchase
Transaction must go through at full market value and the gifted equity deposits must come from close family members*, family friends or ex-partners. We require letter from your solicitor confirming the discount amount, name of vendor, relationship to borrower and understanding from vendor.
*Close family member defined as one of:
- Parents, step parents and adoptive parents;
- Brothers and sisters, half brothers and sisters, and step brothers and sisters.
- Children, step children and adopted children
- Grandparents and step grandparents
- Grandchild and step grandchild; and
- Aunt and Uncle
Self Employed Ltd Co Director
- For Limited companies when using Salary and dividend, and the LTV is below 80%, and Companies house shows the business as solvent, income can be verified using the latest 2 years salary and dividend showing on SA302 rather than verifying through company accounts.
- Where income from a Ltd Company is required, and the LTV exceeds 80%, net profit is used, or the application is on the self-employed product full trading accounts are still required.
Employed
- No longer a requirement to provide a P60
Portfolio Landlords
- No longer a requirement to provide a business plan
Phil Lawford
National Account Manager
0790 939 744
Phil.lawford@saffronbs.co.yk