Abbey for Intermediaries has introduced a fast-track service for loans up to £500,000 and below 60% LTV, which has been welcomed by brokers.
The move is part of a new flexible lending policy, with brokers able to clearly see how much Abbey will lend based on affordability.
It means employed borrowers with clean credit records have to submit no documentation up to 60% LTV, and just a payslip over that amount. Abbey has also formalised its policy of discretion for high earners.
Trevor Youens, director of Flower IFA, says: “This is a positive move from Abbey and should encourage more brokers to use it.”
And Mike Fitzgerald, sales director at Brentchase Financial Services, agrees. He adds: “We will start to use Abbey more now as this will help a number of our high-earning clients.”
Ray Boulger, senior technical manager at Charcol, says: “Abbey was lacking in the high net worth category until now. It is picking up the trend of lending on affordability but retaining the use of income multiples. It is helpful, especially for smaller brokers who may not use Abbey regularly, to have this information in black and white.”
Abbey's approach has two main elements – more user-friendly underwriting and improved income multiples set out in a simple grid.
Ambrose McGinn, director of Abbey for Intermediaries, says: “This is our way of making it faster and easier for the majority of people whose applications are straightforward while still being able to accommodate clients with more complex applications.”
But Boulger does criticise the fact that first-time buyers seeking loans over 90% LTV have to submit a budget planner. He says: “This is an unnecessary pain, especially if the borrower has gone through an intermediary.”