Furness Building Society broadens mortgage criteria and introduces instant decisions in principle
Furness Building Society has announced a package of mortgage criteria enhancements, giving brokers more flexibility when helping clients with different incomes, property choices and borrowing needs.
The changes span residential, buy-to-let and self-build lending. Brokers will also benefit from instant decisions in principle, with individual manual assessment retained for cases that need a personal approach.
Higher borrowing limits
Residential borrowers earning more than £80,000 will be able to borrow up to six times income up to 90% loan-to-value (LTV). Self-build applicants earning more than £100,000 will also be eligible for up to six times income.
The Society is also increasing its maximum loan at 90% LTV from £750,000 to £1 million.
Wider property options
Maximum lending on flats, including new-build flats, will rise to 90% LTV. Flats above commercial premises will also be considered up to 90% LTV for residential lending, subject to criteria.
Borrowers buying a second residential property for a dependent relative will be able to borrow up to 90% LTV. Furness is also widening the access arrangements it will consider for self-build cases through BuildLoan.
More flexibility around income and deposits
Furness is removing the £50,000 minimum income requirement for joint borrower sole proprietor (JBSP) applications, with eligibility driven by affordability.
The changes also offer more flexibility for CIS contractors and foster carers, and broaden options for borrowers using self-invested personal pensions (SIPPs) or assets under management to support affordability.
Further enhancements cover deposit options through Forces Help to Buy and Own New, alongside a wider range of permitted purposes for residential remortgage capital raising.
More options for buy-to-let borrowers
Furness is introducing a new interest coverage ratio (ICR) model, with top slicing available to allow personal income to support rental affordability.
The changes remove minimum income requirements and open up lending to first-time buyers and first-time landlords. Portfolio landlords will also benefit from enhanced criteria, LTVs and exposure limits.
Jon Cartlidge, Head of Member and Broker Strategy at Furness Building Society, commented: “Brokers work with clients whose circumstances don’t always fit a straightforward lending approach. These changes give them more options, whether they’re supporting a contractor, a family buying a home for a dependent relative, or a borrower whose assets form an important part of their financial position.
By widening our criteria across income, property and borrowing purposes, we aim to help brokers find suitable solutions for more clients, while keeping affordability central to every application.”