Vida has announced a series of residential product and criteria changes, alongside reducing rates by up to 106 basis points across selected products.
Vida has made a number of residential criteria enhancements targeted at borrowers with complex income streams, while also simplifying packaging requirements.
For self employed applicants, the minimum trading history has been reduced from two years to 12 months. Where applicants have been trading between 12 and 24 months, brokers are no longer required to submit an accountant’s reference with a current year projection. Instead, Vida will accept three months of business bank statements and one month of personal bank statements.
The lender has also extended the acceptable age of latest year accounts from 18 months to 21 months, giving brokers greater flexibility when submitting cases. Contractors will benefit from a reduction in the minimum time remaining on a contract, which has been lowered from three months to one month.
In addition, Vida has updated its approach to variable income and will now accept 100% of commission income, up from 75%, for affordability assessments. The changes are intended to widen access to lending and support brokers placing cases involving self employed, contractor and commission based borrowers.
In addition to the residential changes, Vida has also reduced selected buy-to-let product rates by up to 80 basis points, as well as reintroducing higher fee options across its buy-to-let range, increasing the number of products available and giving brokers more choice when structuring applications.
Ross Williams, head of product at Vida, commented: “We know people’s lives and incomes don’t always run in straight lines, and that’s exactly why we’re making these changes. By improving our criteria and passing on rate reductions to borrowers, we’re making it easier for brokers to place cases with confidence. We want brokers to feel they can come to us first with self employed customers, contractors or anyone with a more complex income — knowing we’ll look at the whole picture, find solutions, and give more customers a simple, positive route to a mortgage.”
