To illustrate the impact of these changes, the lender said that two applicants each earning £25,000 a year with a £300 monthly loan repayment over 25 years and no dependents, could now borrow an additional £17,200 under the new criteria.
Additionally, the lender has launched a new range of limited edition buy-to-let (BTL) products at 75% loan-to-value (LTV), available on a 5-year fixed term. These products come with fee options of 4% and 7%, with rates starting from 3.90%.
Ross Williams, head of mortgage product management at Vida Homeloans, commented:
“Affordability continues to be one of the biggest barriers to home ownership, and at Vida, we’re committed to addressing it head-on. Our mission is to help more people find a place to call home, and that means designing solutions that make a real difference. That’s why we’re following up our popular 3&Easy, 97% LTV proposition with further enhancements to our mortgage affordability calculation, helping applicants borrow more.”
