Previously, the LTV cap for prime borrowers was set at 80%, while the professional LTV cap restricted mortgage borrowing to 90%.
A minimum income requirement of £35,000 for sole applicants and £60,000 for joint applicants has been introduced for prime mortgage customers borrowing over 80% LTV.
Under the bank’s existing policy, prime mortgage borrowers can apply for a mortgage that is 4.5 times their earnings.
Professional mortgage borrowers can borrow 6.5 times their earnings – if they have a recognised professional qualification – up to 95% LTV after living in the UK for six months. A minimum income requirement of £45,000 remains in place.
Afin Bank said it increased its maximum LTV following feedback from brokers and borrowers that they need more manageable deposit requirements so they can buy a property sooner.
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The lender said the improvements will make its mortgages more accessible to foreign nationals living and working in the UK. However, the mortgages are open to all borrowers, such as self-employed professionals, buy-to-let (BTL) borrowers and high-net-worth (HNW) customers.
The changes, which will be live by the end of November, apply to first-time buyer, mover and remortgage deals for residential mortgages on properties in England and Wales.
They are available as two- and five-year fixed deals or as a tracker mortgage following the Bank of England base rate.
Jason Oakley (pictured), chief executive of Afin Bank, said: “The reaction to Afin Bank has been incredible since we launched in the summer and we have been inundated with interest.
“That’s why we are introducing a 95% LTV to bring homeownership within reach of even more people who have been saving hard towards a mortgage. We already accept gifted deposits from family members based in the UK or overseas, which is a popular source of deposit contribution with diaspora borrowers, so this move will help them even more.”
For a full round-up of changes in the foreign national mortgage market, read: The lowdown on foreign national mortgages: From challenges to competitive advantage.
