You are here: Home - News -

Staffordshire relaxes lending rules in move to encourage first-time buyers

  • 21/05/2003
  • 0
Staffordshire Building Society has relaxed its lending criteria, allowing increased lending multiple...

Staffordshire Building Society has relaxed its lending criteria, allowing increased lending multiples and maximum loan terms.

The society will now offer income multiples up to 3.5 times (previously 3.25) the main income plus a second income, or 2.75 (previously 2.5) times joint incomes. A maximum term of 40 years has also been introduced and the society will lend up to 95% loan-to-value on properties worth up to £175,000.

Richard Dickson, spokesman for Staffordshire BS, said the changes came in reaction to a change in market conditions and feedback from customers and brokers. He said the 46% increase in average house prices over the last four years had made it difficult for first-time buyers to purchase property. However, he denied the move would lead to any affordability problems for borrowers. He said: ‘I think rates would have to go up significantly, by which I mean over 8%, and remain there for some time before borrowers had problems with their repayments.’

Bill Snaith, chief executive of Staffordshire BS, added: ‘These new measures will help make it easier for customers to get through the mortgage application process as quickly as possible.’


There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.

Read previous post:
Advisers see increase in take-

Foreign climes are proving increasingly tempting for UK property buyers, and creating a growing...