Vernon Intermediaries has altered its lending policy, extending its maximum mortgage term from 35 to 40 years, with changes coming into force from tomorrow.
The lender also announced enhancements to its lending policy, which come into force from Tuesday 24 July. Zero-hours contracts with 12 months’ history will also be considered as well as the total income from a second job, and 50% of certain state benefits.
Tom Gurrie, intermediary sales manager, said: “Modern life constantly changes and so too should mortgage lending criteria.
“Some of the changes we are making reflect the way people work today, others are driven by our latest risk assessments but all are centred on flexible, responsible lending and supported by personal service and individual underwriting.”
Other changes include the maximum term being increased to 40 years, self-build being available to 80% LTV and interest-only (sale of property) having a minimum valuation of £350,000.
Debt consolidation is no longer accepted, two years’ accounts are required for the self-employed, contract workers (PAYE) will be need have a minimum 12 months in the role and zero hour contracts are now considered with a 12 month history.
Benefits will now be considered up to 100% of income. For those with a second job, Vernom will consider up to 100% of income and the maximum LTV for new build is now 85% for houses and apartments.