Furness Building Society has announced significant changes to its mortgage criteria, allowing more borrowers to access higher loan amounts. This expansion is particularly beneficial for high earners and those looking to self-build, as it opens up new opportunities in a competitive market.
How Have Mortgage Criteria Changed?
Furness Building Society has increased its maximum loan amount at 90% loan to value (LTV) from £750,000 to £1 million. This allows borrowers to secure larger sums, which can be important for purchasing higher-value properties. Additionally, lending on flats, including new-builds, now also qualifies for up to 90% LTV, expanding options for buyers interested in urban living.
Who Benefits from These Changes?
High-income earners stand to gain significantly from these new criteria. Residential borrowers earning more than £80,000 can borrow up to six times their income, while self-build applicants with incomes exceeding £100,000 are similarly eligible. Furthermore, borrowers purchasing a second residential property for a dependent relative can now access up to 90% LTV, increasing housing options for families.
What This Means for Brokers and Borrowers
Brokers will find these updates beneficial as they cater to clients whose financial situations may not fit traditional lending models. The removal of the £50,000 minimum income requirement for joint borrower sole proprietor (JBSP) applications also provides more flexibility. Additionally, enhanced deposit options through Forces Help to Buy and Own New, along with a broader range of permitted purposes for residential remortgage capital raising, further support diverse borrower needs.
