Hinckley & Rugby for Intermediaries has made changes to its Income Flex product criteria, designed to offer more flexible lending options for borrowers with non-standard income sources.

In addition, the mutual has also introduced changes to its residential criteria regarding builder deposits.

The improvements to the Income Flex criteria include:

• Agency Workers: Maximum loan to value (LTV) increased from 75% to 80%
• Day Rate Contractors: Minimum income requirement removed. A minimum contract term of three months is still required
• Zero-Hour Contractors: The LTV has increased from 75% to 80%
• Stipend Income: Hinckley & Rugby will now accept 100% of stipend income with 12 months’ evidence and will consider loans with LTVs of up to 80% where stipend income is the primary source
• Tronc Payments (Tips): The Society will now accept up to 100% of tips as income, provided there is a minimum of 12 months’ evidence of payments
• Lodger Income: Lodger income can now be fully utilised, up to the government’s tax-free threshold of £7,500 per annum, with the primary income required to exceed this amount.

Alongside the Income Flex changes, Hinckley & Rugby has also updated its residential criteria for builder deposits.

Where the builder provides a deposit of up to 5% of the property’s value, the purchase price will now remain unchanged for LTV purposes. For deposits over 5%, the Society will reduce the purchase price accordingly.

Chris Holmes (pictured), senior product & proposition manager at Hinckley & Rugby, said: “Our latest updates to the Income Flex and Residential products reflect our desire to support borrowers who may not fit the typical income profile. Whether it’s accepting tips as part of income or increasing the LTV for zero-hour contractors, we’re making sure our criteria are flexible enough to accommodate the modern workforce.

“With the changes to builder deposits, we’re also simplifying processes for new-build buyers, ensuring greater clarity and ease of access to higher LTV options.

“At Hinckley & Rugby, we understand that a single approach to lending does not reflect the diverse circumstances of today’s borrowers. While many lenders require applicants to fit specific criteria, our Flex product range is tailored to accommodate the unique financial circumstances of each individual. Our goal is to meet the evolving needs of the market by offering competitively priced mortgage solutions and flexible underwriting, ensuring our broker partners and their clients receive the most suitable support.”