Its maximum loan size is now £500,000 and its loan to income ratio is capped at 4.5 times salary for all residential loans. The lender will also no longer accept overtime, commission and bonuses in its affordability calculations unless the borrower fits the government’s current definition of a key worker.
Buy-to-let loans will no longer be offered to first-time buyers and investment buy-to-let is only available on its clear product range.
All changes will apply to pipeline applicants that have not yet received an offer. Any applicants who have paid valuation fees but have not progressed to offer stage will have their fee refunded.
Banks, building societies and specialist lenders have been withdrawing mortgage products in swathes. Some lenders, such as Together and Vida Home Loans have halted all new lending while they wait to see what impact the coronavirus outbreak will have on the economy. OSB and Precise have stopped accepting new applications so that they can concentrate on processing their existing pipeline and help borrowers who have requested payment holidays.
Other lenders like Foundation Home Loans, and high street giants such as Santander and most recently Nationwide have withdrawn higher LTV products because they are unable to carry out physical valuations.
Bluestone has updated its product on its website with all changes.