Suffolk widens lending criteria to support more complex households

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Suffolk Building Society has introduced a series of criteria changes aimed at expanding access to mortgages for borrowers with more complex income and family arrangements.

The mutual said the updates are designed to reflect modern household structures and employment patterns, following feedback from intermediaries and customers.

Under the revised criteria, the Society will now accept up to four applicants and four incomes on all UK and expat mortgage applications, excluding self-build cases.

It has also increased the proportion of variable income it will consider, with 75% of bonuses and commission now accepted where applicants can demonstrate a reasonable track record.

Contractors will also benefit from a more flexible approach. The minimum contracting experience required has been reduced to 12 months, down from two years, while the minimum time remaining on a current contract has been lowered to three months, from 12 months previously.

The scope of family members able to gift deposits has been broadened, with aunts and uncles now accepted alongside immediate family members, step-parents and grandparents.

Affordability assessments have been widened further to include background investments. The Society will now accept 75% of the value of a professionally managed fund over the term of the mortgage, or 10 years, whichever is higher.

In addition, applicants will be able to raise capital to place funds into a trust, subject to a maximum loan-to-value of 70%.

Suffolk has also revised its approach to foster carers, with foster care income now treated as a form of self-employed income for mortgage purposes.

Charlotte Grimshaw

Charlotte Grimshaw, head of intermediaries at Suffolk Building Society, said: “We’re listening to feedback and we’re keeping pace with complex scenarios.

“We know that some people have varied assets and income, and that families want to support their loved ones.

“Our changes will benefit borrowers directly, but we also want to help those who are providing the backing too.”

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