We’ve updated our lending policy to make things easier for homebuyers

We’ve updated our lending policy to make things easier for homebuyers

On 14th August, we made some positive changes to our lending criteria to support homebuyers looking to get on the property ladder.

What have we changed?

Increased LTI ratios for employed applicants earning £75K or more

We’ve increased loan-to-income (LTI) ratios for employed customers who earn £75,000 or more:

• For loans at 90% LTV or less, we now lend to 6x the applicant’s income where they earn £75,000 or above.
• For loans at higher than 90% LTV, we now lend to 5.5x the applicant’s income where they earn above £75,000.

For applicants earning less than £75,000, our existing LTI ratio still applies.

Please see the below table for our full LTI ratios for employed customers, including the new increases in bold.

Income bracket	Maximum LTV	Maximum loan-to-income (LTI) ratio
Up to £60,000	95%	4.49
£60,001 - £74,999	90%	5.5
£60,001 - £74,999	95%	4.49
£75,000 or above	90%	6.0
£75,000 or above	95%	5.5

Increased max LTV for flats and new builds in London and South East

We’ve increased our maximum loan-to-value (LTV) for flats and new build flats and houses located in London and the South East.

These are the two regions in the UK where property prices are the highest.

Our increased max LTVs comprise:

• Flats (second hand): max LTV has increased from 90% to 95%
• New build flats: max LTV has increased from 80% to 90%
• New build houses: max LTV has increased from 90% to 95%

Note: customers moving in or out of London and the South East may receive a different max loan amount between Decision in Principle (DIP) and Full Mortgage Application. Please ensure your customer is eligible for an LTV band before generating a DIP.

Which areas are included in the LTV uplift?

Flats and new build flats and houses located within the following postcode prefixes are eligible for the LTV uplift:

Greater London	South East
SM, W, NW, KT, EC, RM, E, SE, WC, HA, WD, EN, DA, BR, UB, CR, SW, TW, IG, N	BN, RH, RG, SG, CT, SL, AL, OX, PO, TN, HP, SO, MK, ME, LU, GU

Any questions? We’re all ears

For further information, contact our TBDMs on support@digitalmortgages.net or 0333 399 0055, Monday to Friday from 9am to 5pm.