Suffolk BS enhances lending criteria

Suffolk Building Society has announced that it is improving its lending criteria with four key changes, following feedback from intermediaries and their clients.

Related topics:  Finance News,  Mortgages
Warren Lewis
8th December 2021
Charlotte Ipswich

The Society will increase and standardise the maximum loan size to £1m across <80% LTV standard residential, ex-pat residential, ex-pat buy-to-let, buy to let, and holiday let products. The previous maximum loan size varied between products and ranged from £500k to £750k.

Recognising that rising house prices mean that it is sometimes necessary for family members to purchase a property together, the Society will now consider applications from family members across its product range.

10 times income limit removed

For buy to let applications, the lender is removing its 10 times indebtedness rule. This means that where previously an applicant could not have any more than 10 times their sole or joint income in debt in their personal or limited company name, the Society will now judge outstanding credit commitments on a common-sense basis, allowing it to use its discretion to lend above this limit. The maximum portfolio size will remain as three buy-to-let and/or holiday let properties or 10 background properties on a residential application.

Where Suffolk Building Society previously would only consider family Assured Shorthold Tenancy Agreements (ASTs), it will now allow landlords to let their property to three unrelated professionals on a single AST.

Charlotte Grimshaw, (pictured) Head of Intermediary Relations, Suffolk Building Society, said: “These changes are as a result of us continually assessing the marketplace to better understand how we can support intermediaries and their clients. We don’t promise to lend to everyone but relaxing our criteria in these four areas means that we can help with a greater number of broker cases, with clients benefitting from our common-sense approach to underwriting.”

More like this
Subscribe
to our newsletter

Join a community of over 30,000 intermediaries and keep up-to-date with industry news and upcoming events via our newsletter.