Important lending criteria changes

From Monday 15 April 2019, we’re making some important lending criteria changes for residential and Buy to Let applications.

Residential

The table below shows the changes we’re making:

   Current From Monday 15 April

Maximum term

Capital and interest

Interest only - sale of property

Interest only - endowment or investment

 

35 years

25 years

35 years

 

40 years

25 years

25 years 

Part and part maximum LTV

75%

(max 50% on interest only)

85%

(max 50% on interest only)

We’re also making some annual updates to the household expenditure figures we use in our affordability calculation and making changes to income tax bands and national insurance to align with the 2019/20 tax year.

Our affordability calculator will be updated to support these changes.

Buy to Let

The table below shows the changes we’re making:

   Current From Monday 15 April

Maximum term

 

25 years

40 years

Maximum age at maturity

75th birthday

85th birthday

We’re also updating the Buy to Let self-financing calculation which will run in the background.

Our Buy to Let calculator will be updated to support these changes.

Pipeline rules

All full mortgage applications (FMAs) already submitted on Introducer Internet by 9pm on Saturday 13 April won’t be affected and will continue to be progressed on our existing residential and Buy to Let lending policies.

If a Buy to Let full mortgage application was submitted on Introducer Internet before 9pm on Saturday 13 April,  and you want to ‘Amend’ the FMA or create an ‘Additional Buy to Let’, you'll need to create and submit a new Buy to Let application.

Any FMAs submitted from 6am on Monday 15 April, or where a material change is made to an FMA originally submitted before 9pm on Saturday 13 April, will be assessed using the new residential and Buy to Let lending policies.

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