Melton Building Society has increased the maximum loan to value (LTV) available across its interest-only and part and part mortgage ranges.
The mutual said the change was to help borrowers who may be challenged with affordability.
For its interest-only mortgage, Melton Building Society will now lend up to 75% LTV, an increase from the previous limit of 60% LTV. For part and part applicants, it will lend up to 85% LTV, up from 75% LTV previously.
Sole applicants for interest-only mortgages must have a minimum income of £50,000, while joint applicants must have a joint income of at least £75,000, with one applicant earning £50,000.
The maximum age for borrowers at the end of the mortgage term is 80, or 70 for applicants who are downsizing.
Dan Atkinson (pictured), head of intermediaries at Melton Building Society, said: “Since our inception nearly 150 years ago, we have been committed to supporting people to achieve financial independence and to own their own home. For today’s borrower, affordability has become increasingly challenging, with the significant increase in [deposit] levels and property values well-documented.
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“It is important to us as a modern mutual that we do what we can to support today’s borrower to achieve their homeownership dreams, whether that’s through flexible underwriting, practical lending criteria or through our range of product options. We hope that these changes will broaden the range of applicants that we can support with making those dreams become a reality.”
Earlier this year, the mutual introduced a tiered approach to buy-to-let (BTL) mortgages, with different rates for higher- and lower-rate taxpayers.
