They will be led by Stuart Haire, chief executive of Skipton Group, to illustrate the role of mutuals in supporting economic growth.
They will also reinforce their call for an increase to the Financial Policy Committee’s (FPC’s) LTI flow limit cap on lenders, which restricts lending above 4.5 times income at just 15% of residential advances each year.
This will be after a session with the Treasury Select Committee and include CEOs from Yorkshire and Nationwide building societies. Representatives from other mutuals have also jointly written to Dame Meg Hillier MP, chair of the House of Commons Treasury Committee, to encourage a change to the current policy.
Nationwide, Yorkshire and Skipton building societies have all recently made calls for the cap to be increased.
Skipton Building Society has also made changes to its lending criteria, effective from today, to improve affordability.
Aldermore Insights with Jon Cooper: Edition 5 – Feeling enthusiastic about next year’s run-of-the-mill market
Sponsored by Aldermore
Charlotte Harrison, CEO of homes at Skipton, said: “We continue to support calls for a review of the LTI flow limit. In the meantime, as part of our commitment to supporting more first-time buyers, we’re making changes to the stress rate, lowering the income requirement to access larger loans, whilst increasing our LTI policy at 95% LTV.
“Increasing the LTI flow limit would enable us to help more first-time buyers have a home, in turn boosting economic growth and supporting the government’s housebuilding targets.
“Higher LTI lending is subject to the same robust affordability assessments and stress testing as standard lending. Our experience is that customers demonstrate the same, if not higher, levels of creditworthiness.”
