Building Society Leek United has made a number of changes to its lending policy across its lending into retirement, buy-to-let and remortgage ranges.
The changes will see Leek United use a borrower’s current income for affordability purposes rather than their projected pension income. That is providing that retirement is over 10 years away and there is evidence that a pension is in place.
It will also accept income from self-invested personal pensions (SIPPs). Elsewhere the affordability assessment has been removed for non-homeowner buy-to-let’s. The society now needs £20k 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 (pictured), 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, the society’s 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.”