We are a flexible lender and to prove it we have made a number of changes to our criteria across our mortgage product range. Below is a breakdown of all of the tweaks we have made.
LTV Home Improvements (Additional Borrowing)
| Criteria | Current Policy | New Policy |
| LTV | 80% LTV | 90% LTV |
The increase in the loan-to-value (LTV) for home improvements and additional borrowing benefits borrowers who need access to a higher LTV ratio. This change provides more financial flexibility for borrowers, allowing them to carry out home improvements or obtain additional funds while leveraging a higher portion of their property value.
In a changing climate where Remortgages are becoming more and more popular, we’re offering customers who might have less equity in their property the chance to raise funds for home improvements. This change provides more financial flexibility for borrowers that might not be able to move or want to increase the value of their property.
Capital Raising
| Criteria | Current Policy | New Policy |
| LTV | 80% LTV | 90% LTV |
The increase in the loan-to-value (LTV) for capital raising benefits borrowers who require additional capital for various purposes, such as investments, repaying commitments used for property purposes, or other financial needs. By allowing a higher LTV ratio, borrowers have greater access to funds based on their property’s value.
Debt Consolidation
| Criteria | Current Policy | New Policy |
| Max loan | £50k | £50k |
| Max LTV | 70% LTV | 80% LTV |
| Max DTI | 40% | No max DTI in line with standard policy |
| Max % of property value | 30% | 30% |
| Income Multiple | x4 | x 4.49 in line with Standard Income Multiples |
| Accepted on Credit Flex | Not accepted | Not accepted |
The changes to the debt consolidation criteria aim to support borrowers who seek to consolidate their debts. By increasing the maximum loan-to-value (LTV) and removing the maximum debt-to-income (DTI) restrictions, borrowers can access a higher LTV ratio and manage their debts more effectively. Additionally, the adjustment in the income multiple in line with standard criteria offers more options to borrowers with varying financial circumstances.
Loan Sizes (Residential)
| Criteria | Current Policy | New Policy |
| LTV range | 95% – £350,000 | 95% – £400,000 90% – £500,000 85% – £600,000 80% – £800,000 70% – £1,000,000 60% – £1,500,000 |
The changes in loan sizes for residential properties benefit borrowers who require larger loan amounts to accommodate the rise in property prices. By increasing the loan size bands, borrowers have greater access to financing options, enabling them to purchase properties within their desired price range while aligning with market trends.
Loan Sizes (Buy-to-Let)
| Criteria | Current Policy | New Policy |
| LTV range | 75% – £500,000 | 75% – £750,000 60% – £1,500,000 |
The changes in loan sizes for buy-to-let properties benefit borrowers who seek larger loan amounts for their investment properties. By increasing the loan size offering, borrowers have a wider range of options, allowing them to invest in higher-value properties and potentially achieve better returns on their investments.
Tier 2 Visas
| Criteria | Current Policy | New Policy |
| LTV | Maximum 80% LTV | Tier 2 & BNO (Individual Income below £50k): Up to 75% LTV Tier 2 & BNO (Individual Income above £50k): up to 80% LTV |
| Employment Record | 3 Years Employment Record | Tier 2 & BNO (Individual Income below £50k): 3 Years Employment Record Tier 2 & BNO (Individual Income above £50k): 2 Years Employment Record |
| Residency | 3 Years Residency | Tier 2 & BNO (Individual Income below £50k): 3 Years Residency Tier 2 & BNO (Individual Income above £50k): 2 Years Residency |
The changes to Tier 2 Visa criteria aim to benefit borrowers with Tier 2 and British Nationals Overseas (BNO) visas seeking a mortgage. By adjusting the loan-to-value (LTV) for individuals with lower incomes and requiring a shorter employment record, borrowers in this category gain increased access to mortgage financing. Additionally, the adjustment in residency requirements provides greater flexibility for borrowers to secure suitable mortgage products.
Non-Contributing Party
| Criteria | Current Policy | New Policy |
| Maximum age | 85 | No Maximum Age (Repayment Only) |
The change in the maximum age for non-contributing parties benefits borrowers who have non-contributing individuals included on their mortgage applications. By removing the maximum age restriction, borrowers can include non-contributing parties without being constrained by age limitations, providing greater flexibility and options for families or individuals.
Income and Credit Flex
| Criteria | Current Policy | New Policy |
| Short-Term Contract History | 12 Months History, with one renewal | Six Months History, with one renewal |
| Agency Workers | Not Considered | Acceptable with 12 months evidence (Max 75% LTV) |
| Bursary | Case-by-Case Decision | Accept 100% of Bursary income, provided there is another form of income on the application |
| CCJs (County Court Judgments) | None within the last 12 months | Maximum of 1 up to £250 (3-12 months ago), Satisfied before Completion |
| Defaults | None within the last 12 months | Maximum of 1 up to £250 (3-12 months ago), Satisfied before Completion |
Being flexible is at the core of what we do, and the criteria changes across our Income Flex and Credit Flex product offering provide more opportunities and flexibility for borrowers with unique employment circumstances, income sources, and credit history.
Specialist
| Criteria | Current Policy | New Policy |
| Income Multiple 3rd & 4th Borrower | x4.49 Joint Income +1+1 | Considered on an individual basis by our MRC x4.49 for all applicants, all borrowers must reside within the property. |
The change in the income multiple criteria for the 3rd and 4th borrower benefits borrowers who are part of a multiple borrower application. This change provides more flexibility for borrowers with unique financial situations, allowing them to qualify for the mortgage based on their individual income.
Interest Only
| Criteria | Current Policy | New Policy |
| LTV for Sale of Security | 50% LTV | 60% LTV |
| LTV for Sale of Other Property | 60% LTV | 70% LTV |
| Minimum Value for Sale of Security | £400,000 | Must evidence ability to downsize within the local area (within 50 miles of the property). |
The changes in the Interest Only product criteria benefit borrowers opting for interest-only mortgages. The increased loan-to-value (LTV) ratios for the sale of security and other property provide more financial flexibility and access to a larger portion of the property value. Additionally, the change in the minimum value for the sale of security allows borrowers to choose downsizing options that suit their financial needs and location.
Second Homes
| Criteria | Current Policy | New Policy |
| Second Homes LTV | 80% LTV | 90% LTV |
| Second Homes Repayment Type | Capital & Interest Only | Interest Only allowed subject to standard policy requirements |
The changes in the second home criteria include an increased loan-to-value (LTV) ratio of 90% provides a lower deposit requirement, allowing borrowers to access a higher portion of the property value. Allowing interest-only repayment on second homes provides flexibility in managing mortgage payments, subject to standard policy requirements.
Buy-to-Let
| Criteria | Current Policy | New Policy |
| Minimum Income | £25,000 | No Minimum Income Required |
| Minimum Experience LTD Company & Portfolio | 24 Months Experience required | No Experience required |
| LTD Company Personal Portfolio | N/A | Must be Self-Supporting at 125% ICR (Interest Coverage Ratio) |
| Maximum Age Top-Slicing | 75 | 85 – Subject to satisfactory retirement income |
The changes in the Buy-to-Let (BTL) criteria provide benefits to both new and experienced Landlords. Removing the minimum income requirement offers flexibility to borrowers with varying income levels, allowing a wider range of individuals to invest in BTL properties. Removing the minimum experience for LTD Company BTLs creates opportunities for new Landlords to get on to the property ladder. Requiring a self-supporting portfolio ensures rental income covers mortgage payments, maintaining financial stability for borrowers and those operating through a limited company. Extending the maximum age to 85 for Top-slicing, subject to satisfactory retirement income, enables older borrowers to invest in BTL properties as part of their retirement strategy.
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