Metro Bank adds 75 per cent LTV products and changes criteria
In its residential range, the lender has brought back its 75 per cent LTV products with rates now starting from 2.29 per cent.
Metro Bank had withdrawn its 75 per cent LTV products in its core and interest-only ranges last week in order to reprice them.
On the buy-to-let side, the bank has cut products at 80 per cent LTV by 24 basis points to 3.05 per cent. The five-year fixed rate has a maximum loan size £500,0000.
The product fees for its 75 per cent LTV products in the range have been reduced to £1,999.
It has also repriced its two-year products at 70 per cent LTV by 10 basis points to 2.89 per cent. It has a maximum loan size of £2m as well as a £1,499 product fee.
The lender added that it will accept 60 per cent of bonus, commission and overtime income from the last year’s P60.
Metro Bank said that from tomorrow it would change its standard variable rate, which would stand at 4.25 per cent for residential products and 4.75 per cent for buy-to-let products.
Mansfield BS reverts to pre-pandemic income criteria
The mutual will now allow all applicants to use 50 per cent of their regular bonus, overtime and commission payments in affordability calculations.
It previously limited the eligibility of additional annual income to just key workers in response to closures and the number of industries putting their staff on furlough last year.
Mansfield Building Society has also extended its criteria to allow up to 20 per cent of the mortgage loan to be available for debt consolidation within its versatility range.
This range is for borrowers with impaired credit. The mutual already allows up to 10 per cent of a mortgage loan to be used for debt consolidation on its prime mortgages.
Andy Alvarez, head of mortgage sales at Mansfield Building Society, said this was a welcome return to the mutual’s usual approach to income and debt consolidation.
“Our latest criteria changes offer increased flexibility for applicants who are looking to get more from a lender. We’re really pleased to be able to offer these solutions and they show our commitment to versatile common sense lending.
“We have made the effort to seek out the barriers that are being faced by our brokers and we have reacted to this feedback.”
“Based on what we have heard, we feel that our brokers will be enthusiastic about the potential these changes will bring and would encourage them to come forward if they have quirky cases that would benefit from our approach regardless of complexity.
“We hear a lot about common sense approaches to lending within the industry and strongly feel that we should ensure we use every opportunity to demonstrate it,” he added.
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This was followed by reports that Sean Tompkins, chief executive of the Royal Institution of Chartered Surveyors, was in talks to step down following various scandals at the association earlier this year.
The government’s proposed 1.25 per cent hike in National Insurance and its ramifications on small business owners and recruitment were also of interest to brokers.
Santander’s launch of more sub-one per cent deals, Halifax’s changes to its bonus commission and overtime income, as well as Cambridge Building Society’s self-employed mortgages proved popular amongst readers.
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