Leek United enhances affordability criteria

Leek United Building Society has made a series of enhancements to its lending policy.

Related topics:  Mortgages
Rozi Jones
15th July 2019
Leek United Building Society LUBS
"The changes to lending policy will be welcomed by our broker partners and provide further opportunities for them when it comes to assessing income and affordability"

As part of the changes, where a borrower’s retirement is over 10 years away, and the Society has evidence that a pension is in place, it will use the borrower’s current income for affordability purposes rather than the projected pension income.

Leek will also now accept income from self-invested personal pensions (SIPPs).

Additionally, Leek has removed the affordability assessment for non-homeowner buy-to-lets, with the Society requiring just £20,000 income and normal interest rate coverage.

Finally, the interest rate to be used for affordability assessment for a like-for-like remortgage has been reduced to the Society’s standard variable rate.

John Kelly, operations director at Leek United, said: “These updates are designed to ensure our lending policies are in line with our current assessment when considering pension and SIPP incomes as well as improving affordability requirements for non-homeowner buy-to-let borrowers. We constantly review and respond to the prevailing market demands and our own lending strategy which these improvements take account of in a dynamic mortgage market.”

Lisa Buckley, head of sales and marketing, added: “I’m confident the changes to lending policy will be welcomed by our broker partners and provide further opportunities for them when it comes to assessing income and affordability for older borrowers and new buy-to-let customers.”

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