We have been delving into the world of criteria searches to help us understand what mortgage advisors are looking for. In recent months, data from Criteria Brain shows that criteria around the maximum age for an applicant, such as “Maximum age at the end of the mortgage term”, has been among the top searches across most regions of the UK.
This becomes clearer when you look at the current landscape of increasing mortgage rates and costs of living. It’s no wonder people are now looking at longer terms as a means of stretching their affordability a little further, with the aim of reducing their monthly mortgage repayments.
As a lender we recognise this challenge and want to lend a hand. After all, helping people buy their homes is what Building Societies are, well, built on! However, we have more up our sleeve to help your clients than simply extending the term of their mortgage, which could work out more costly in the long run.
Firstly, let’s take a closer look at how our criteria for standard products can help flex those affordability muscles:
- Lending to age 75 without proof of pension
- Maximum term of 40 years
- Interest-only available up to 70% LTV for residential mortgages with a suitable MRV in place (up to 80% LTV for part and part mortgages)
- Joint Borrower Sole Proprietor available on our core products – always proving very popular with family and friends wanting to give a leg up to loved ones!
- Tailored Term – our made-to-measure add on comes in very handy when two or more applicants have a significant age gap. We calculate what the youngest applicant can afford over the maximum term, leaving the older applicant to top up affordability over a shorter term.
It doesn’t just stop there! When it comes to enhancing affordability, we also have a custom-built product range, Income Flex, with criteria designed for those with non-standard and irregular income arrangements. This range was designed to give these types of borrowers the flexibility to get more for their money.
Affordability-boosting criteria available with Income Flex includes:
- 5.5x income multiple with no minimum income threshold
- Up to 100% of overtime salary considered with only 1 year’s evidence required
- Up to 100% of second income taken into consideration
- 100% of benefits and tax credits used for affordability calculation
So, if you have clients who feel like their numbers simply don’t add up, take a look at our affordability aids and see if we’ve got the solution that could maximise their borrowing potential. Our team are just seconds away from answering your call. If you’re not sure whether the shoe fits – try it on!
You can call us on 01455 874 084 or leave us a live chat message below and we will get back to you as soon as possible.
Our responsive and helpful team are always on hand to help if you have any questions.
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