Vernon Intermediaries has extended its maximum mortgage term to 40 years from 35, to take account of changing work and borrowing patterns.
Zero-hours contracts with 12 months’ history will also be considered as well as the total income from a second job, and 50% of certain State benefits.
Tom Gurrie (pictured), intermediary sales manager at the North-West based mutual, said: “Modern life constantly changes and so too should mortgage lending criteria.
“Some of the changes we are making reflect the way people work today, others are driven by our latest risk assessments but all are centred on flexible, responsible lending and supported by personal service and individual underwriting.”
The new lending policy will be in force from tomorrow, and includes the key criteria improvements below:
- Maximum term increased to 40 years
- Self-build available to 80% LTV
- Interest-only (sale of property) minimum valuation of £350k
- Debt consolidation no longer accepted
- Self-employed – two years’ accounts required
- Contract workers (PAYE) – minimum 12 months in role
- Zero-hours contracts now considered (12 months history)
- Benefits – will consider as additional income of 50%
- Second job – will consider up to 100% of income
- New build maximum LTV 85% for houses and apartments.
