Coventry Building Society has amended its income multiples for loan to values (LTVs) above 90 per cent to accept 4.49 times income instead of 4.
The changes will be effective from today and pipeline applications will be switched onto the new criteria.
The mutual will also now accept annual bonuses of 50 per cent of the average two years’ bonus income, or 50 per cent of the most recent year’s annual bonus income, if the two-year amount is lower.
Additionally, 50 per cent of regular bonus payments will be accepted for affordability assessments and three-month accounts must be provided to show a consistent level of earnings.
Jonathan Stinton (pictured), head of intermediary relationships at Coventry Building Society, said: “Increasing the income multiples and allowing more flexibility on bonuses will increase the options available to those clients who want to get onto the property ladder.
“Building up a deposit for a mortgage is one of the bigger challenges facing buyers and this has been made all the more difficult with such strong market demand and rising property prices.”
He added: “We’ve consistently supported the market at higher LTVs and these extra measures will help to broaden the choices for those with smaller deposits who are looking to buy now.”
Shekina is the deputy editor at Mortgage Solutions and commercial editor at Mortgage Solutions and Specialist Lending Solutions. She has nearly eight years of experience in the B2B publishing market, having previously covered the hospitality, retail, pet, accounting and jewellery sectors.
Shekina has worked for Mortgage Solutions and Specialist Lending Solutions for almost five years. Here, she covers the market’s breaking news stories, engages with professionals in the sector, and oversees any commercially agreed content in partnership with mortgage-related companies.
This includes presenting webinars and hosting roundtable discussions on developing themes in the mortgage sector.
She is an NCTJ-trained journalist and was nominated for the Headline Money Awards Mortgage Journalist of the Year in 2021.
In her spare time, Shekina likes to read, travel, listen to music and socialise with friends.
She currently reports on current events in the mortgage market and liaises with financial clients to produce sponsored content.
Follow her on Twitter at @ShekinaMS