Revisions to lending criteria made in response to current market conditions
Central Trust and Mercantile Trust, the intermediary lending brands of the Norfolk Capital Group of Companies, have announced revisions to their lending criteria.
The maximum loan-to-value (LTV) the lenders will offer in Northern Ireland has been reduced to 70% LTV, while the minimum valuation required throughout the whole of the UK has been increased to £75,000.
As part of the criteria changes, Central Trust now offers loans of £100,000 net and above for up to 65% LTV; minimum income has been increased to £22,500; maximum advance has been reduced to £150,000; and minimum time employed is now six months. Central Trust also removed its status 4 tier.
Mercantile Trust introduced a minimum income of £22,500 for first-time buyers and first-time landlords. It also reduced the first charge bridging and buy-to-let term’s maximum advance to £500,000, while second charge bridging and buy-to-let term’s minimum advance was reduced to £150,000.
“We have made these criteria changes in response to current market conditions,” Maeve Ward (pictured), commercial operations director at Central Trust and Mercantile Trust said. “While there is much uncertainty in the market at the current time, we have acted prudently so we can continue to offer products which serve the underserved, as well as those that need to repair and rebuild, and those who have been victim of circumstance and require a second chance.
“Advisers that submit cases to us will find that we are still willing to listen to the applicant’s story and apply a common-sense approach to lending.”
