Hanley Economic Building Society has refreshed its residential lending criteria, aiming to accommodate a broader range of income profiles and give brokers more scope to place cases that fall outside conventional parameters.

The most significant change is the removal of fixed loan to income caps across the residential range. Rather than applying a predetermined multiple, the society will now assess affordability through a fuller picture of income and expenditure.

The move is designed to support borrowers whose finances may be more complex or variable, and to provide intermediaries with greater room to manoeuvre.

Several updates have been introduced as part of the refresh, including more accommodating rules for self-employed applicants.

Those with one year of trading and relevant experience may now be considered, reflecting the growing number of borrowers with shorter track records but stable earnings histories.

Contractors will also benefit from added flexibility. Day-rate workers with at least 12 months of experience and a minimum of four weeks left on their contract, or proof of renewal, are eligible. Multiple contracts can be assessed as part of the affordability review.

SECONDARY INCOME

The society has additionally broadened the treatment of secondary income. Earnings from a second job are now accepted after 12 months for employed applicants or 24 months for those self-employed, provided total working hours do not exceed 50 per week. Overtime can also be included, where supported by two years of evidence.

Applicants currently in probationary periods may be considered if they have held a similar role for at least one year, and up to 50% of certain benefit income — including Attendance Allowance, Carer’s Allowance, PIP, Disability Income Support and Universal Credit — can be taken into account.

INTEREST-ONLY

For interest-only lending, the hard equity requirements previously associated with enhanced repayment vehicles have been removed. All applications continue to be reviewed individually by the in-house underwriting team, with no credit scoring applied.

Ollie Slimm (pictured), head of credit risk and lending strategy at Hanley Economic Building Society, said: “Our focus is on shaping our criteria to mirror the realities of modern working lives.

“By introducing greater flexibility around how we assess income, employment and affordability, we’re giving brokers more scope to place those cases that need closer consideration.

“Each client’s circumstances are unique, and we’re here to support our intermediary partners in finding the most suitable route forward.”