Enhanced options introduced to support borrowers facing affordability challenges
To assist borrowers facing affordability pressures, Melton Building Society has increased the loan-to-value (LTV) limits for its Interest Only and Part and Part mortgage products. The updated criteria, effective immediately, allow applicants greater borrowing capacity.
For Interest Only mortgages, the maximum LTV has risen from 60% to 75%. Similarly, the Part and Part mortgage product now permits borrowing up to 85% LTV, up from the previous cap of 75%.
Eligibility requirements for Interest Only loans include a minimum income of £50,000 for sole applicants, or £75,000 combined for joint applicants, with at least one individual earning £50,000. Borrowers can take out loans that extend to the age of 80, while downsizing applicants are restricted to a maximum age of 70 at the end of the term.
Details of Melton’s current product range and criteria can be viewed on the updated intermediary product guide.
According to Dan Atkinson (pictured), head of intermediaries at Melton Building Society, the changes reflect the mutual’s commitment to supporting borrowers in a challenging housing market.
“Since our inception nearly 150 years ago, we have been committed to supporting people to achieve financial independence and to own their own home,” Atkinson said. “For today’s borrower, affordability has become increasingly challenging with the significant increase in deposits levels and property values well documented.
“It is important to us as a modern mutual that we do what we can to support today’s borrower to achieve their homeownership dreams, whether that’s through flexible underwriting, practical lending criteria or through our range of product options. We hope that these changes will broaden the range of applicants that we can support with making those dreams become a reality.”
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