AFI no longer requires brokers to obtain self-employed accounts as evidence of income where lending is less than 90% loan to value.
Self-employed income can now be evidenced through either an accountant’s letter or the latest two years’ SA302s.
Broker advice fees can now be included in the mortgage advance in all cases below 75% LTV, provided the fee doesn’t exceed 1% of the total loan. This change is designed to give more choice to borrowers who don’t wish to pay a broker fee upfront, allowing them to instead add it to the mortgage if they wish.
AFI has also introduced changes to its lending policy for debt consolidation. It has increased the maximum amount allowed for a loan part/s where the purpose is debt consolidation to £35,000 (or in cases where the LTV is more than 50%, 35% of the total lending, whichever is lower).
Alan Mathewson, managing director of Abbey for Intermediaries, said: “We constantly review our lending policy and these changes are designed to support both intermediaries and their clients. We are pleased to be able to streamline the application process for self-employed borrowers by removing the need to obtain self-employed accounts, and to support borrowers who don’t wish to pay an upfront broker fee by allowing them to add it to their mortgage if they wish.”
