Applicants will have to show 12 months of paying a rental amount that is within 10% of their prospective new monthly mortgage payments.
As an example, if a couple pays £1,500 in rent per month, they could be considered for a monthly mortgage payment of up to £1,650.
The 5.49 times limit applies on applications where at least one applicant earns over £75,000. This is a drop from £100,000 previously.
The society will also allow capital raising to purchase a property without simultaneous completion, up to a maximum of 80% loan to value (LTV).
The firm said this could be useful for older borrowers looking to purchase a property in preparation for retirement, moving in once they are ready and then subsequently selling their previous home or when purchasing an investment property.
Suffolk Building Society will now allow capital raising to purchase an onward property in a limited company and permit applicants to purchase a property where the deposit has come from the applicant’s limited company (SPV).
Charlotte Grimshaw (pictured), Suffolk Building Society’s head of intermediaries, said: “We’re really excited to take rental history into account for the first time, as well as join a very small group of lenders who are offering meaningful support to first-time buyers.
“Many renters have the means to meet sizeable monthly mortgage repayments – often paying more than they would on a mortgage whilst renting. However, a multitude of factors, such as rising house prices and higher rents, has meant customers can often afford to rent or save for a deposit, but rarely both.
“The current situation has put homeownership out of reach for many. The enhanced income multiples, when combined with other affordability-boosting tools, such as five-year fixed rates or longer terms to reduce monthly payments, should help some of our renters achieve their dream of buying a home. It feels great to be able to support brokers and their customers with a more generous loan-to-income ratio.”
She added: “We’re always reviewing our criteria and taking broker feedback on board to see what changes we could make to improve our overall proposition. Our focus is always on fulfilling the needs of those customers we’re trying to reach.
“As our regular brokers know, we’re able to assist with a wide range of cases. We understand that not every customer or application fits neatly into a box, so we consider each one individually and with understanding.”
Suffolk Building Society recently relaxed its criteria for foreign nationals, expats and downsizers.
