For all BTL applications, the lender has removed its minimum income requirement. Rather than prove income borrowers will only need to provide 3 months bank account statements so that the underwriter can treat each case on its individual merits and confirm that the account is well maintained. This will make it easier for brokers to help borrowers, some of whom may find it difficult to meet the minimum income hurdle required by most lenders.
Near Prime criteria has also been changed, with the maximum loan being increased from £300,000 to £500,000 in line with borrower demand.
Alan Cleary, Managing Director of Precise Mortgages comments:
“These changes are a common sense approach to underwriting which will allow good quality borrowers to obtain mortgages they otherwise may not have qualified for because of arbitrary rules. We have considered these changes very carefully to ensure we continue to lend in a responsible and compliant manner and within our credit risk mandate.”