Lenders tweak and improve residential mortgage offerings

NatWest Intermediary Solutions is revising its residential lending criteria, while Platform has increased its loan to income ratio for certain applicants and Halifax is offering first-time buyers and home movers £1,000 cashback when they choose a deal from its range of mortgage products.

Following feedback from brokers, NatWest’s changes to its residential mortgage offering will cover the minimum income requirement for interest only mortgages, the maximum loan-to-value (LTV) for new build houses and the loan to income maximum for higher loan values.

NatWest now requires a minimum income of £75,000 from at least one applicant, down from £100,000, on its interest only loans. Other than discretionary bonuses, the usual income types will be accepted.

With the aim to help those borrowers who are unable to raise a 20% deposit, the lender has also increased its maximum LTV for a residential mortgage on a new build house from 80% to 85%. For residential mortgages on new build flats and buy to let mortgages on new build properties, the LTV limits will remain the same.

NatWest has also tweaked the loan to income maximum for loans of more than £500,000, raising it to match the current limits for loans of £500,000 or less, on all bands up to 90% LTV.

Platform, the intermediary mortgage brand of The Co-operative Bank, has also revised its residential mortgage offering, increasing the loan to income ratio for those borrowers looking for a loan of 80% LTV or less.

Looking to address the fact that house prices are disproportionate to average earnings, Platform will now allow home buyers to borrow more relative to their income, so long as they meet certain criteria.

Brokers will have access to mortgage deals that will enable their clients to borrow up to 4.85 times their incomes, so long as the LTV is less than or equal to 80% (including any fees added to the loan), subject to disposable income. Where applications cannot meet the new criteria, a loan to income multiple of 4.49 will apply.

As from 31 May, Platform will launch its mortgage retention process, which will mean that from this date, intermediaries will receive a gross procuration fee of 0.3% for all customer renewals with mortgage advice, where the deal switch completes.

Highlighting the fact that the average first-time buyer deposit has more than doubled over the past decade from £15,168 in 2006 to £32,321 in 2016, Halifax has announced that it will offer first-time buyers and home movers £1,000 cashback when they choose a product from its residential mortgage range.

Richard Washington, mortgages director at the Halifax, said: “Our latest offer aims to be there when first-time buyers and home movers need us, providing a boost to bank balances during what can be an expensive period. This should mean that borrowers can focus on celebrating moving into their new properties and making them a home.”

 

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