The Society has announced significant improvements to our Income Flex product criteria, providing more flexible lending options for borrowers with non-standard income sources. Additionally, we have introduced changes to our Residential criteria concerning builder deposits.
The changes have been made in response to evolving market conditions, allowing the society to meet growing customer demand and improve affordability for borrowers with varied income sources.
Income Flex criteria updates
- We have introduced new criteria for the following income types:
- Stipend Income: Hinckley & Rugby will now accept 100% of stipend income with 12 months’ evidence and will consider loans with LTVs of up to 80% where stipend income is the primary source.
- Tronc Payments (Tips): Responding to industry trends, the Society will now accept up to 100% of tips as income, provided there is a minimum of 12 months’ evidence of payments.
- Lodger Income: Lodger income can now be fully utilised, up to the government’s tax-free threshold of £7,500 per annum, with the primary income required to exceed this amount.
- We have enhanced criteria for the following income types:
- Agency Workers: Maximum loan-to-value (LTV) increased from 75% to 80%, enhancing opportunities for those employed in temporary roles.
- Day Rate Contractors: Minimum income requirement removed. A minimum contract term of three months is still required.
- Zero-Hour Contractors: The LTV has increased from 75% to 80%, offering more borrowing capacity for workers with irregular hours.
Residential criteria: Builder Deposits
We have also updated the criteria for builder deposits. Where the builder provides a deposit of up to 5% of the property’s value, the purchase price will now remain unchanged for LTV purposes. For deposits over 5%, the Society will reduce the purchase price accordingly.
These changes demonstrate our ongoing commitment to flexible lending solutions, delivering for a wider group of borrowers irrespective of their income streams or deposit sources.
Chris Holmes, Senior Product & Proposition Manager at Hinckley & Rugby, commented:
“Our latest updates to the Income Flex and Residential products reflect our desire to support borrowers who may not fit the typical income profile. Whether it’s accepting tips as part of income or increasing the LTV for zero-hour contractors, we’re making sure our criteria are flexible enough to accommodate the modern workforce.
“With the changes to builder deposits, we’re also simplifying processes for new-build buyers, ensuring greater clarity and ease of access to higher LTV options.
“At Hinckley & Rugby, we understand that a single approach to lending does not reflect the diverse circumstances of today’s borrowers. While many lenders require applicants to fit specific criteria, our Flex product range is tailored to accommodate the unique financial circumstances of each individual. Our goal is to meet the evolving needs of the market by offering competitively priced mortgage solutions and flexible underwriting, ensuring our broker partners and their clients receive the most suitable support.”
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Our dedicated Business Development team will be happy to speak to you about any cases you have, explain how our specialist products and flexible criteria can benefit your clients, or answer any questions you have about our Mortgage Referrals Committee. Get in touch on 01455 894 084. Or send us a message on our Live Chat, our response time is often only seconds!
Please note product details and criteria are correct at launch and are subject to change.
