This will be open to applicants who meet the mutual’s affordability requirements. Loughborough Building Society said this would improve borrowing potential for clients, particularly the self-employed, who could benefit from using their last year’s accounts, and higher-income applicants.
The mutual will apply its flexible approach to credit history by disregarding any defaults that have been resolved over two years and county court judgments (CCJs) settled over three years.
Historical defaults on telecoms, mail order, utilities, or bank accounts can also be disregarded if resolved at least three months prior to the mortgage application.
Ashley Pearson, head of intermediaries at Loughborough Building Society, said: “This enhancement reinforces The Loughborough’s commitment to adapting its lending criteria to better serve the needs of modern borrowers, ensuring more people can access the right mortgage solutions for their circumstances.
“We recognise the challenges many borrowers face when trying to secure the borrowing they need, particularly those who are self-employed or have seen recent income growth. By increasing our income multiple to 5.5x up to 95% LTV, we’re providing a more flexible and expansive solution that enables those looking to purchase or remortgage to maximise their borrowing potential in a responsible manner.”
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Earlier this year, the mutual announced it had updated its mortgage origination platform to automate parts of the application process and improve the experience of brokers and clients.
