Leek Building Society has introduced eight lending criteria changes covering income, contractors, later-life borrowing and complex properties.
The mutual has increased the maximum age at which earned income can be used for affordability purposes to 75 at the end of the mortgage term. This applies across all products, including interest-only mortgages.
Child Benefit, Pension Credit, Carer’s Allowance and Disability Living Allowance can now be considered in full when assessing affordability.
The changes take effect immediately for new decisions in principle and follow feedback from brokers about the barriers affecting otherwise viable cases.
SUPPORT FOR CONTRACTORS
Applicants working on contracts of between six and 12 months can now be considered where they have a continuous two-year track record in their industry.
Leek has also removed the routine requirement for employer references and P60s when verifying bonus income and shift allowances.
Company directors applying for limited company buy-to-let mortgages will no longer routinely need to provide company accounts.
LEASEHOLD AND NEW-BUILD CHANGES
The minimum acceptable lease term has been reduced from 75 years to 50 years remaining at the end of the mortgage.
Prescriptive ground rent caps have also been removed, with individual lease terms considered as part of the assessment.
Leek has additionally expanded its panel of acceptable new-build warranty providers.
VIABLE SOLUTIONS
Nikki Warren-Dean (main picture, inset), head of intermediaries at Leek Building Society, said: “We place real value around listening to feedback from our broker partners to understand where the real friction points lie in today’s market.
“These criteria changes are directly aimed at making life easier for intermediaries and opening up viable mortgage solutions for their clients.
“Whether it’s offering realistic options for borrowers extending into later life or streamlining income verification to accelerate time-to-offer, these updates reinforce our commitment to providing specialist lending solutions that fit today’s ever-evolving mortgage market.”
