Hinckley and Rugby Building Society has made changes to its lending criteria for income flex and residential mortgages.
The mutual’s income flex range considers additional forms of income such as investment, commission and overtime.
Within this range, there has been an increase to the maximum loan-to-value (LTV) limit for agency workers from 75% to 80%, which the mutual said would improve options for people employed in temporary roles.
This change has also been made for zero-hours contractors.
Hinckley and Rugby Building Society has also removed the minimum income requirement for day-rate contractors, but the minimum contract term of three months remains.
The mutual will now accept 100% of stipend income with 12 months of evidence and will consider loans with LTVs of up to 80% where stipend income is the primary source.
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It will also accept up to 100% of tips as income, as long as there is at least 12 months’ evidence of payments.
Hinckley and Rugby Building Society will also use all lodger income up to the government’s tax-free threshold of £7,500 per year.
Within its residential criteria, a change has been made where a builder provides a deposit of up to 5% of the property’s value. In these cases, the purchase price will remain unchanged for LTV purposes. For deposits larger than 5%, the mutual will reduce the purchase price accordingly.
Chris Holmes (pictured), senior product and proposition manager at Hinckley and Rugby Building Society, said: “Our latest updates to the income flex and residential products reflect our desire to support borrowers who may not fit the typical income profile. Whether it’s accepting tips as part of income or increasing the LTV for zero-hour contractors, we’re making sure our criteria are flexible enough to accommodate the modern workforce.
“With the changes to builder deposits, we’re also simplifying processes for new-build buyers, ensuring greater clarity and ease of access to higher-LTV options.”
He added: “At Hinckley and Rugby, we understand that a single approach to lending does not reflect the diverse circumstances of today’s borrowers. While many lenders require applicants to fit specific criteria, our flex product range is tailored to accommodate the unique financial circumstances of each individual.
“Our goal is to meet the evolving needs of the market by offering competitively priced mortgage solutions and flexible underwriting, ensuring our broker partners and their clients receive the most suitable support.”
Principality BS adjusts mortgage rates
Principality Building Society has announced changes to its mortgage rates, which will come in on 7 October.
Across its residential range, select two-, three- and five-year fixed rates will be reduced in rate by as much as 0.11% at 65% and 75% LTV.
Its two- and five-year fixed rates at 80% LTV with a fee will be cut by 0.04%, while the three-year fix at the same tier will go down by 0.08%.
Principality Building Society’s two- and five-year fixes for Help to Buy Wales will be cut by 0.2% and its two- and five-year fixed joint borrower sole proprietor (JBSP) mortgages at 75% LTV will be reduced by up to 0.09%.
The mutual will lower its five-year fixed deal at 60% LTV by up to 0.1% for buy-to-let (BTL) borrowers.
As for its residential cashback mortgages, select two- and five-year fixed rates between 65% and 90% LTV will be cut by as much as 0.1%.
Principality Building Society also announced some rate increases, including fee-free two- and five-year fixes at 80% LTV by as much as 0.05%, as well as two- and five-year fixed JBSP deals at 80% LTV by the same amount.
Select BTL rates have also risen, such as certain five-year fixes at 70% and 75% LTV by 0.05%.
Falling swap rates have seen a number of lenders make reductions to their mortgage rates in recent weeks.
