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Hinckley and Rugby, Nottingham and Tipton enhance lending criteria – roundup

  • 05/12/2018
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Hinckley and Rugby, Nottingham and Tipton enhance lending criteria – roundup
Hinckley and Rugby Building Society, Nottingham Building Society, and Tipton and Coseley Building Society have enhanced their lending criteria.


Hinckley and Rugby BS has launched bespoke mortgages for medical professionals, designed to help them buy their first and subsequent homes.

This is part of Hinckley and Rugby’s wider assistance to people in professions which also includes accountancy and the law.

The mortgages for medics apply the mutual’s manually underwritten processing to applications from newly and recently qualified doctors and dentists, with higher loan to income multiples and increased maximum loan sizes.

Doctors and dentists with one to three years of experience can borrow up to 5.5 times income at up to 80% loan to value (LTV). Above 90% LTV the income multiple is 4.5.

This decreases for experienced medics, for example doctors can get a multiple of 4.2 times income five or more years after qualifying.

Hinckley and Rugby head of sales and marketing Carolyn Thornley-Yates (pictured), said: “Six out of every seven complex or unusual applications from medical professionals were being approved by the Mortgage Referrals Committee (MRC), so we developed enhanced criteria for this group of people who can look forward to ongoing employment with continuing career development and earnings growth.

“Many lenders, especially those with automated processes, might baulk at doctors working as locums, the newly qualified who have only just secured a training contract or GPs who become a partner in a group practice.

“Doctors’ contracts have evolved, with additional income due to hours worked or other enhancements. We can accept a larger percentage of perceived additional income. And our welcome for joint borrower/sole proprietor status complements the complex incomes of many medics.”


Nottingham BS adds BTL flats

Nottingham BS has added buy-to-let (BTL) flats to its lending portfolio.

It will lend up to 65% LTV on BTL flats with property values between £100,000 and £500,000, and on terms up to 35 years.

Flats need to be leasehold with a minimum of 85 years unexpired lease on application. Units need to be a minimum of 35 square metres and acceptable properties must be a minimum of two-years-old and have been previously occupied.

Nikki Warren-Dean, head of intermediary sales for The Nottingham for Intermediaries, said: “Our business development managers across the country relayed that brokers were increasingly asking for us to consider lending against buy-to-let flats.

“That feedback, twinned with the strategic pillar of The Nottingham to grow and reward our membership, led to the decision to add buy-to-let flats to our criteria.

“It is also fantastic news for landlords and mortgage advisers looking to take advantage of our rental calculation of 160% at 4.25%.”


Tipton cuts ICR calculations

Tipton and Coseley BS has changed its buy-to-let (BTL) product criteria.

This follows the cuts to BTL tax relief introduced by the government in 2017.

Tipton has cut its interest cover ratio calculation for experienced landlords for both basic and higher rate taxpayers, with the required rental cover reduced to 125% and 130% respectively.

In addition, Tipton is also reducing its minimum age on application from 25 to 21 years on all of its BTL products.

Cammy Amaira, director of sales and marketing, said that recent cuts to tax relief have made BTL investing more challenging for new and experienced landlords.


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