Skipton has revamped its mortgage lending criteria to make them more objective and affordable.
The changed criteria will look at a person's net disposable income and cross-reference this with their other bills such as credit cards and personal loans.
Paul Darwin, development manager of intermediary sales at Skipton, says: “We want to be more objective and identify more quickly whether someone is in the right band.
“We also want to look more closely at their net disposable income. For example, one young person earning the same income as another may be able to afford more on their mortgage if they do not have to make repayments on other loans.”
Darwin says it is important that Skipton is in tune with income multiples as a means of affordability come Mortgage Day.
Tom Bland, associate at Savills Private Finance, says: “The reasoning behind this is to make analysing a client's potential to have a loan easier.
“If they have other debts it could affect their mortgage payments. It could make the loan less affordable for them but they might be able to borrow more. A lot of other lenders do this already.”