It also reduces selected rates by as much as 0.25%
Digital lender Atom bank has made criteria changes across its mortgage range to increase affordability and help prospective homeowners get onto the property ladder.
The bank has increased its maximum loan size to £1 million for 80% and 85% loan-to-value (LTV) Prime products and up to £750,000 for 90% and 95% LTV Prime products.
Income multiples for self-employed applicants were increased from 4.49x to 5.5x for those with a single income of £75,000, or a joint income of £100,000. Atom also increased allowable variable income from 50% to 70% to help those who work in jobs with variable income.
The lender said it made the changes to cater for customers who did not qualify for products attached to the mortgage guarantee scheme, which is capped at a property value of £600,000. It added that it hoped the latest changes to the maximum loan amount would benefit those in London and the South East in particular, where latest ONS house price data showed house price inflation.
Atom also announced rate reductions across a number of its mortgage products, with selected Prime rates seeing rate cuts of up to 0.25%.
“We are always looking to enhance our proposition so it’s easier for people to make home ownership a reality,” stated Richard Harrison (pictured), head of mortgages at Atom bank. “It’s great to be announcing the criteria changes we have made alongside some rate reductions, which we think can make a significant impact.
“Clearly, it’s tough for buyers right now, with financial headwinds making it difficult to make the leap from renter to homeowner. We think the increased max loan amount can help a lot of first-time buyers, particularly those who won’t qualify for products attached to the mortgage guarantee scheme. This will also benefit those customers living in places like London and the South East, where house prices tend to be higher.
“Affordability for the self-employed and those with variable income can also be a particular challenge in these regions, so we hope the changes we have made for these groups will make getting on the ladder that little bit easier for them.”
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