Coventry for Intermediaries has increased the amount borrowers can borrow among other changes it has made to its lending criteria.
In a note to brokers, the lender said that borrowers for loans greater than 90% LTV may access up to 4.49 times income rather than the previous multiple of 4.
It said that pipeline applications “will proceed onto the higher amount”.
As well as this, 50% of the average of the latest two years’ annual bonus or 50% of the most recent bonus, if lower, will now be accepted.
Other changes to bonuses include 50% of regular payments being accepted on applications, too – three months’ evidence will be required for this.
Coventry Building Society head of intermediary relationships Jonathan Stinton (pictured) said: “Increasing the income multiples and allowing more flexibility on bonuses will increase the options available to those clients who want to get onto the property ladder.
“Building up a deposit for a mortgage is one of the bigger challenges facing buyers and this has been made all the more difficult with such strong market demand and rising property prices.
“We’ve consistently supported the market at higher LTVs and these extra measures will help to broaden the choices for those with smaller deposits who are looking to buy now.”
