Skipton Building Society has increased the maximum loan-to-income (LTI) for residential mortgages.
Skipton Building Society has returned to pre-pandemic criteria by increasing the maximum loan-to-income (LTI) for residential mortgages.
The lender has reverted to its pre-COVID lending policy for self-employed contractors, and now only requires one month remaining on current contract, reduced from a previous minimum of three months.
It has also made a policy change to buy-to-let (BTL) pound-for-pound remortages, which will all be calculated using an income coverage ratio (ICR) of 125%, at 5.5% or 5% if it is for a 5-year fixed or longer.
John Scrivens, regional manager at Skipton Building Society for Intermediaries, said: “We're pleased to announce these changes to our lending criteria, to support brokers to help more of their clients own their own homes. It's all part of our mission to make things easier for brokers."
Simon Butler, director at CMME, added: "We highly value and welcome the continued support of Skipton in the contractor space, notably their willingness to listen to ongoing feedback around the challenges our clients face in securing a mortgage.
“CMME see more and more of the pre pandemic six-12 month contracts now offered over three months or less so this is a great change to their already contractor friendly policy that will help many more of our customers.”