It adjusts its criteria following broker feedback
Principality Building Society has announced changes to its mortgage lending policy for non-European Economic Area (EEA) applicants, following broker feedback.
The changes include allowing up to 95% loan-to-value (LTV) lending for both EEA and non-EEA applicants, reducing the UK residency requirement for non-EEA nationals from three years to two, provided they pass a credit score, and lowering the minimum visa period from two years to 12 months.
The lender has historically adjusted its criteria to better serve professionals holding visas, particularly those in high demand, specialised roles such as medical professionals with the NHS, by making exceptions and increasing income multiples for newly qualified professionals and NHS workers.
The mutual, which recently reported record annual results, said it made the policy changes to meet the evolving needs of non-EEA applicants and maintain alignment with other mortgage providers’ practices. This initiative also responds to the 2023 Broker Tracker Survey results, highlighting the demand for adjustments in visa criteria among the top preferences for brokers.
Helen Lewis (pictured), national intermediary manager at Principality Building Society, stated the lender’s engagement with brokers has been instrumental in evolving their lending criteria to better accommodate clients’ needs.
“We have taken a common sense approach to lending, understanding that not every case is straightforward,” she said. “Feedback from brokers suggests there is an increased difficulty finding a suitable solution for their non-EEA clients.
“The introduction of these changes to our lending criteria will hopefully make mortgages more accessible for clients looking to purchase a home in the UK.”
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