Aldermore has amended its residential mortgage criteria.
The lending criteria changes include the bank increasing its maximum mortgage term from 35 to 40 years, as well as rising the loan to income ratio from 4.5 times to 5.5 times.
The new loan to income ratio is applicable for applicants with an income of at least £50,000 annually, and for the Help to Buy scheme the ratio is set at 4.5 times.
Furthermore, the bank will now lend up to £1m, increased from £400,000, within its ‘Standard Level 1’ range, and up to 80 per cent LTV. Aldermore will also lend up to £500,000 on 95 per cent LTV offers, increased from £400,000.
In addition, the bank has increased the maximum LTV within its ‘Standard Level 3’ range to 80 per cent.
The bank adds that all communication defaults are now ignored and its ‘Standard Level 1’ limit has been increased to £500 from £300.
Recognised property types have also been amended. The lender will now accept applications for mortgages on studio flats over 30 square meters, has removed maximum acreage rules, and it no longer restricts flat roof properties.
Aldermore director of mortgages Damian Thompson comments: “Our core purpose is to make it easier for everyone to get the home they want so we are very pleased to expand our mortgage options for customers.
“People’s situations can be varied and complex, that they often do not fit in the boxes lenders require them to fit in, so it can be a real challenge to receive the financial support they need.”