This new maximum loan applies to loans up to 80 per cent loan to value (LTV) across standard and expat residential, buy to let and holiday let products. The previous maximum loan ranged from £500,000 to £750,000.
Suffolk ‒ which recently rebranded from Ipswich Building Society ‒ is removing its 10 times indebtedness rule for buy-to-let applications. Previously an applicant could not have more than 10 times their sole or joint income in debt in their name, or that of their limited company. However, it will retain its maximum portfolio size as three buy to let or holiday let properties, or 10 background properties on a residential application.
Also for buy-to-let applications, the mutual will now allow landlords to let their property to three unrelated professionals on a single assured shorthold tenancy agreement (ASTs). Previously it would only consider family ASTs.
In addition, Suffolk will now consider family applications, noting that rising house prices mean it is sometimes necessary for loved ones to assist in the purchase of a property.
The criteria changes apply from today.
Charlotte Grimshaw (pictured), head of intermediary relations at Suffolk Building Society, said that the changes had been made as a result of the mutual continually assessing the market and how it can support brokers and their clients.
She continued: “We don’t promise to lend to everyone but relaxing our criteria in these four areas means that we can help with a greater number of broker cases, with clients benefitting from our common-sense approach to underwriting.”
The criteria changes come after the mutual worked with Mortgage Brain to develop a new affordability calculator.