Abbey for Intermediaries has introduced a lending policy focussing on affordability which will apply to all mortgage applications across the Choices range.
The policy centres around flexibility and transparency, with the intermediary able to clearly see how much Abbey will lend, focusing on affordability and the customer's ability to meet repayments.
Lending multiples are set out in a grid which allows the intermediary to check the amount Abbey will lend, based on the client's gross income against LTV of the property. While the aim is to provide clearly defined borrowing criteria, Abbey for Intermediaries will still be able to exercise discretion for customers on a case-by-case basis.
Abbey for Intermediaries has also recognised the need for speedier processes on mortgage applications as advisers aim to secure a mortgage quickly for customers who are buying property. Abbey says its streamlined policy means that the majority of customers will only need to supply one payslip with their application, significantly reducing the volume of paperwork that is needed for processing.
Ambrose McGinn, director of Abbey for Intermediaries, says: “In most cases all the information we need to process an application is on the customer's most recent payslip. This policy is our way of making it faster and easier for the majority of people whose applications are straightforward, while still being able to accommodate customers with more complex applications.
“Cutting back on paperwork may seem like a bold step, but we have simply recognised the need for a faster more streamlined process. The systems and underwriting processes we have in place remain absolutely focused on responsible lending.”
Abbey for Intermediaries' lending policy applies to both new and pipeline applications.