The following update has been received this morning and serves to further restrict interest only lending (most lenders currently do above 75% LTV), restrict borrowing capacity and a warning that might in the future restrict your ability to move house without penalty!
"On Friday 10th February, we are making some important changes to our lending criteria.
1. We constantly review our offering to ensure it best meets the needs of your clients and following a review of our interest criteria we have taken the decision to reduce our maximum LTV on our residential mortgages where any loan part is on an interest only basis to 50%.
2. At the same time, we are also reducing the maximum number of applicants from four to two. Any paper applications received after Monday 13th February, will be rejected.
In addition to the above changes, we have also clarified the following area in our lending guide:
ERC waivers for existing mortgage customers moving home
We’ve amended our customer and intermediary guides to make it clear we may withdraw this concession in the future. We are not withdrawing the concession at this time".
Nice post, this post is very important for mortgage customers.
ReplyDeletemortgage news