The changes apply to its first and second charge mortgages, including the availability of automated valuation models (AVMs) on Right to Buy purchase applications up to 80% loan to value (LTV). This will be subject to confidence levels. If confidence levels are not met or the LTV is above 80%, Norton Home Loans will require a full physical valuation.
The specialist lender has also reduced the required conduct period for debt management plans (DMPs), with satisfactory performance now accepted after six months, instead of the previous 12.
Additionally, Norton Home Loans has improved support for first-time buyers and now requires a minimum credit score of 300 for all borrowers and a £300 surplus across the overall case. Day-one referrals will no longer be needed unless these criteria are not met.
The lender said the changes should be suitable for applicants who do not meet high stress criteria.
Further, rates have been cut by up to 1.4% across all products, following the recent base rate reductions.
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David Binney (pictured), head of sales at Norton Home Loans, said: “We’re continuing to see strong and consistent demand from borrowers who don’t fit the traditional mould of a high street customer. That might mean borrowers with a minor credit issue, variable income, or historic[al] financial arrangements such as a debt management plan that’s now well under control.
“We’ve implemented this package of criteria enhancements to remove some of the unnecessary friction that prevents those cases from progressing. For example, by shortening the DMP conduct period and allowing AVMs on Right to Buy and purchase applications, we’re reducing the number of small but time-consuming hurdles that can hold a case up for weeks. Similarly, the updates for first-time buyers are designed to simplify the process and give brokers more confidence at the point of recommendation.
“These refinements, along with the recent rate reductions, are about making sure our proposition evolves with the market. Brokers are dealing with an increasingly complex client base, and it’s our job as a specialist lender to adapt and support them.”
