Brokers can now source mortgages for clients to borrow up to 4.85 times income, where Loan to Value (LTV) is less than or equal to 80% including any fees added to the loan, subject to disposable income. A loan to income multiple of 4.49 will apply to any applications that do not meet the specified criteria.
The bank said house prices had risen disproportionately to average earnings, leaving many first-time buyers struggling to afford their own home. It said brokers were now able to source mortgages for their clients which allow them to borrow more relative to their income, provided they meet other affordability criteria.
Paul Norcott, head of Platform, (pictured) said: “We’re pleased to be able to offer this increased loan to income (LTI) ratio to our brokers, helping them to find the best deal for their clients. We have included eligibility criteria for this more favourable LTI ratio to ensure that we’re still maintaining a responsible stance on lending options.”
Intermediaries will receive a gross procuration fee of 0.3% for all customer renewals with mortgage advice where the deal switch completes and also where a retention request is submitted. All new rates will be available to product switching customers across mainstream and buy-to-let ranges.
In March, The Co-operative Bank’s annual results confirmed its reliance on its mortgage division to help turn around its fortunes. The lender began a sales process in February and the group posted a statutory loss before taxation of £477.1m, compared with £610.6m in 2015.
The lender’s mortgage originations continued to increase last year, with completions totalling £3.1bn in 2016 compared with £2.8bn in 2015 and £1.1bn in 2014.