Afin Bank has increased the maximum loan to value on its Prime and Professional mortgages to 95%, alongside rate reductions of up to 100bps across both ranges.
The lender said the changes are aimed at supporting groups who often struggle to access mainstream lending, including the self-employed, qualified professionals and foreign nationals living and working in the UK.
The new higher LTV Prime products, available between 80% and 95% LTV, start at 6.39% for a two-year fix and 6.49% for a five-year fix. In the Professional range, now available between 90% and 95% LTV, rates begin at 6.24% for a two-year fix and 6.34% for a five-year fix.
Across the existing product sets, Prime rates up to 80% LTV have been reduced, with two-year fixes ranging from 5.24% to 5.34% and five-year fixes from 5.34% to 5.49%. Two-year tracker rates now range from 5.99% to 6.39%, with no early redemption charges.
In the Professional range, existing products up to 90% LTV have also been cut. Two-year fixed rates now fall between 5.34% and 5.99%, five-year fixes between 5.49% and 6.09%, and two-year trackers between 6.09% and 6.74%, with no early redemption charges.
SUPPORT FOR UNDERSERVED BORROWERS
The lender has also adjusted its eligibility criteria. For Prime mortgages, the minimum salary requirement is now £35,000 for sole applicants and £60,000 for joint borrowers, with maximum borrowing of up to four and a half times income. Foreign nationals may apply with only six months of UK residency.
The Professional range continues to offer enhanced loan to income ratios of six and a half times for applicants with recognised professional qualifications. Professionals from overseas can now also access the new 95% LTV products with six months of UK residency.
Jason Oakley, chief executive officer of Afin Bank, said: “Brokers and customers have told us that in the current economic climate, not only do they need products designed for their specific circumstances, they also want mortgages that are more affordable, with smaller deposits.”
He said: “These changes have been made to bring home ownership within reach of borrowers who don’t always get the support they need because their situations are a bit different. We are supporting the self-employed, qualified professionals and foreign nationals working in the UK, who are vital to the growth of our economy.”
INDIVIDUAL UNDERWRITING
Afin said all mortgages are individually underwritten based on the borrower’s true financial position rather than an automated model. This, it said, helps overcome issues faced by borrowers with complex incomes, shorter credit histories or limited UK residency.
The enhanced Prime and Professional products are available as two-year and five-year fixed rates or as a two-year tracker, for first-time buyers, home movers and remortgage customers purchasing or refinancing residential property in England and Wales.
All fixed rate deals carry a £1,495 fee, which can be added to the loan subject to maximum LTV, and allow overpayments of up to 10% of the mortgage balance each year without penalty. The tracker mortgages have no early redemption charges.
Alongside its Prime and Professional ranges, Afin also offers premier mortgages for high net worth clients and lending to buy-to-let borrowers.
