Taking effect from 1 December 2007, the key changes are as follows:
- Completion fees for all products increased to £1,250
- Maximum permitted LTV now 90% (for Near Prime employed borrowers)
- Maximum debt-to-income ratio (DTIR) reduced to 45%
- Advances over £500,000 now considered upon request
- Maximum permitted arrears reduced on most plans
- Minimum rental cover on Buy-to-Let (BTL) products increased to 120%
- Minimum advance on BTL products raised from £25,001 to £50,000
- Minimum property valuation increased from £40,000 to £60,000
- A full valuation report is required in all cases; Money Partners is currently unable to accept automated valuations (AVMs) as the primary or sole assessment of property value
Martin Gilsenan, Money Partners’ director of mortgage sales, said: “The changes we have made represent a prudent balance between the specialist lending sector’s appetite for risk and wider market realities. In doing so, we have preserved many of the most attractive elements of our offering while keeping it sustainable at a time when demand for mortgage-backed assets is decidedly subdued.”
