Nottingham enhances affordability rules; Loughborough ups LTV limits
Two mutuals, Nottingham Building Society and Loughborough Building Society, have announced updates to their mortgage lending criteria, designed to make it easier for more people to borrow.
Nottingham Building Society has widened its affordability criteria by now accepting 100% of secondary income in mortgage applications, up from the previous 50% threshold.
In addition to recognising all secondary income, the lender will now accept 100% of child maintenance income, reduce its pension contribution assumption to 5%, accept contractual travel allowances at 100%, and update National Insurance thresholds in line with revised bandings.
The lender has recently introduced new 80% loan-to-value (LTV) products to offer UK landlords more accessible and flexible buy-to-let investment options. It has also reduced selected residential and buy-to-let rates, as well as introducing some new products earlier this week.
“Our latest updates to affordability criteria reflect our ongoing commitment to adapting to the needs of today’s borrowers,” said Matt Kingston (pictured left), sales director at Nottingham Building Society. “By recognising a wider range of income sources, such as 100% of secondary income and child maintenance, we’re ensuring our criteria evolve with modern financial realities.”
Meanwhile, Loughborough Building Society has raised the LTV limit on its 5.5x income multiple from 85% to 95% for residential borrowers meeting affordability criteria.
Loughborough, which also introduced changes to its lending in retirement policy, said the latest adjustment in the LTV limit was designed to improve borrowing potential, especially for self-employed applicants who can use their latest accounts, and for higher-income borrowers seeking flexibility.
“We recognise the challenges many borrowers face when trying to secure the borrowing they need, particularly those who are self-employed or have seen recent income growth,” said Ashley Pearson (pictured right), head of intermediaries at Loughborough Building Society.
“By increasing our income multiple to 5.5x up to 95% LTV, we’re providing a more flexible and expansive solution that enables those looking to purchase or remortgage to maximise their borrowing potential in a responsible manner.”
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