Suffolk Building Society has increased the maximum loan-to-value on its joint borrower sole proprietor (JBSP) mortgages and new build flats to 90%, in a move aimed at widening access to borrowers with smaller deposits.
The change allows applicants to borrow more when supported by parents or relatives under the JBSP structure, which has become a popular option for families helping younger members on to the property ladder or into a remortgage.
The Society said the higher LTV will also apply to new build flats, an area where many lenders remain cautious. By combining this with manual underwriting, the Suffolk expects the update to appeal to brokers dealing with more complex cases, including those in expat, later life and intergenerational lending.
At the same time, the minimum income requirement of £20,000 for later life borrowers is being removed.
Charlotte Grimshaw, head of intermediaries at Suffolk Building Society, said: “Having recently enhanced our loan-to-income ratios for applicants with rental history, it’s great to offer new build flats and JBSP for those with smaller deposits.
“JBSP is already proving very popular with our brokers. As well as boosting affordability, there are tax planning advantages when it comes to liability for second home stamp duty surcharge, and first-time buyers retaining their stamp duty discount.
“We hope first-time buyers, people starting over, and some downsizers, will also welcome the ability to borrow up to 90% on new build flats. Apartment living can help to address the UK’s housing needs, particularly for those purchasing in urban areas.”
The mutual said the changes underline its focus on flexible criteria designed to give brokers more options when working with clients who may not fit mainstream mortgage models.
