The new model will enable C&G to make tailored lending decisions on the basis of customers’ individual circumstances, rather than on traditional 'one size fits all' income multiples.
C&G believes this approach is better suited to the current market environment, where house price inflation has prevented many people from buying a home despite interest rates being at historic lows.
As part of the move, C&G is launching a competitive Fixed-Rate Plus mortgage which lets customers who fall outside the new affordability model borrow more against their income. The product – which will be offered to customers who need to borrow more than traditional income multiples allow - is fixed for five years at 5.49 per cent up to 90 per cent LTV and 5.89 per cent at 90-95 per cent LTV.
For Fixed-Rate Plus, intermediaries receive a procuration fee of up to 0.45 per cent.
John Champion, intermediary sales director at C&G, said: “House price growth – and historically low rates – means that today’s customer expects, and needs, to borrow larger sums. The new model acknowledges that no two customers are the same, and helps us make the best, most responsible lending decision to suit all individual circumstances.”
