The lender said the changes, which take effect immediately, were the result of an extensive review and were focused on ‘bringing an element of affordability into the equation’ while ensuring it remains a responsible lender.
Increased income multiples on a range of products including self-cert, 100 per cent-plus, standard and FlexAbility mortgages have been introduced based on the applicant’s gross income. The lender has also revised the amount it will lend at each LTV limit. On its self-cert products, rather than lending £250,000 at 90 per cent LTV and £300,000 up to 80 per cent LTV, the revised limits are £400,000 up to 90 per cent and £500,000 up to 80 per cent.
Tim Sturley, head of distribution at MX, said: “We review our products regularly to ensure they reflect what is happening in the market and changing customer needs, while helping us to maintain our competitive edge. These changes to the criteria are consistent with wider changes in the industry and will keep MX at the forefront of product innovation.’’
Rod Murdison, proprietor of Murdison & Browning, said on balance it seemed a good change. “It’s based pragmatically on the large increase in capital values we’ve seen over the last five to 10 years and addresses the issue of affordability in a world where there is an ongoing determination to keep interest rates as low as possible. Expressed in percentage terms the new maximums may be considered by some observers to be irresponsible but when the actual sum of money being put down as a deposit on these more valuable properties is looked at then the applicant really is showing a commitment to the property market.”
