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Mortgage Lending Policy update — 4th May


We’ve made changes to our Mortgage Lending Policy

We’ve made some changes to our Mortgage Lending Policy for Prime and Near Prime mortgages — these updates are in place effective immediately.

What have we changed?

Prime mortgages

  • We’ve increased LTV for new build houses from 85% to 90%.

Near Prime mortgages

We’ve changed some policies around defaults:

  • 3 or more defaults in the last 2 years will no longer trigger a decline.
  • Defaults will be accepted as long as there has been 0 in the last 12 months, and no more than 4 in the last 36 months.

Changes to both Prime and Near Prime mortgages

We’ve updated the following policy for both types of product:

  • To streamline the application process, we have removed the case requirement for gifted deposits.

Please visit our updated Mortgage Lending Criteria for full details.

Why have we made these changes?

We want our Mortgage Lending Policy to be as clear and straightforward as possible, as well as making it easy for more customers to find a suitable product with us. To achieve this, we’ll continue to review our policies going forward.

These new updates are just the latest that we’ve introduced in 2022. Back in February, we made changes to our Mortgage Lending Policy that brought improvements like:

  • Increasing maximum LTV for Near Prime products from 75% to 85%
  • Increasing loan-to-income ratio from 4.49x to 5.5x income for employed applicants who are mid to high earners (have over £60K income) when they apply for a mortgage up to 90% LTV

Any questions?

Please contact our TBDM team by email at or by phone on 0333 399 0055 (9am–5pm, Mon–Fri). Alternatively, you can contact your RDBM.