The changes aim to provide increased flexibility and tailored solutions
Swansea Building Society has made significant adjustments to its lending criteria, aimed at refining its mortgage lending approach.
To streamline the self-employed income assessment process, the lender will now review the last two years of accounts or tax returns, as opposed to the previous three-year requirement.
For investors seeking limited company borrowing, the maximum loan-to-value (LTV) for applicable products will increase from 70% to 75%.
The mutual, which achieved its highest ever growth last year, has also revised its standard maximum loan amounts for non-regulated loans. For buy-to-let mortgage products, the maximum loan amount has increased from £300,000 to £500,000, with higher amounts subject to individual assessment. The maximum loan amount for self-build loans has also been raised from £500,000 to £1.5 million.
Swansea has also adjusted its loan-to-income multiples. For joint borrowers, the multiples have increased from 3.5 to 4.5 joint income, with the possibility of higher multiples on a case-by-case basis. Sole income multiples remain at 4.5, also subject to case-by-case considerations.
In addition, joint borrowers eligible for the medical professional product will see their loan-to-income multiples rise from 4.5 to 5.5 joint income, matching the level for sole incomes, with the option for higher multiples on a case-by-case basis.
These changes follow the enhancements introduced in January, including the debut of a new regulated bridging mortgage product, a green BTL mortgage product, and a shift in product fee charges on regulated products to a flat £1,249 product fee.
“Our commitment to meeting the wide ranging and diverse needs of our customers is unwavering,” Alun Williams (pictured), chief executive at Swansea Building Society, said. “These changes to our lending criteria signify our dedication to providing increased flexibility and tailored solutions, ultimately supporting our customers on their unique financial journeys.”
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