Branded lender ICMG Homeloans has launched a sub-prime deal offering 5 x income.
The deal, funded by Rooftop Mortgages, has been structured in response to concerns surrounding bogus self-cert applications and to encourage income verification by extending income multiples on status sub-prime cases.
The new multiples are 5+1 or 3.5 x joint up to 85% LTV or 4+1 or 3.25 x joint.
ICMG director Chris Gardner says: “We see this as a positive move to encourage income verification for both self-employed and employed clients.”
And Richard Williamson, director of retail at brokerage Essex & Capital, says: “This will allow us to write more status business.
“It's good to see a lender taking a sensible approach to lending by recognising that we are in a long-term low interest environment – even if rates are creeping up a bit.”