The bank has increased its maximum age at the end of the mortgage term to 75, bringing it more in line with other banks and building societies which have extending maximum age criteria over the last 12 months.
Income and loan size enhancements come in the form of a £500,000 increase to its maximum mortgage advance taking it to £1.5m and the removal of the requirement to provide three years accounts if the applicant is self-employed. Mortgage applicants still have to have three years’ trading history but only need to supply two years’ accounts to prove their income. Income multiples for large loans have also increased.
Improvements have been made to loan-to-values (LTV) on different property types. The bank will now consider lending up to 90% LTV on flats in modern high rise developments situated above good quality commercial premises. LTVs on new-build houses or the first sale of the property will increase to 85%, and 80% for new-build flats. Both represent a 5% increase in LTV criteria.
Andrew Montlake, director at Coreco, said: “It is good to see lenders come out of the blocks fighting in 2017 and these are some good changes from Bank of Ireland. Increasing income multiples and maximum loan sizes as well as increasing the maximum age will help give borrowers more choice in the market.
“Increasing the LTV on new-build properties is also an important change especially if more new-build properties are to come on to the market.”
On its buy-to-let lending criteria, the lender has removed the minimum income requirement for applicants.
The bank said it has made the changes to broaden its broker appeal and expand its customer base.