Nottingham Building Society has made further changes to its mortgage criteria, designed to streamline the process for both brokers and customers.
The updates were made as part of The Nottingham’s strategic development to ensure that its products and services reflect the changing needs of borrowers.
The society revised its maximum loan sizes, based on loan-to-value (LTV) ratios, as follows: £1.5m for LTVs greater than 75%, £1m for LTVs greater than 80%, £750,000 for LTVs greater than 90%, and £500,000 for LTVs greater than 95%.
This applies to all residential mortgages except retirement interest only (RIO), self-build and new-builds which have the following maximum loan sizes: RIO £500,000, self-build £600,000 and new-build £750,000.
The Nottingham also eliminated the need for bank statements in the majority of cases where the LTV is 80% or below.
Underwriters may still request bank statements in some cases if necessary to support the lending decision.
The society said it will accept mortgage applications from individuals currently in a probationary period, subject to underwriter discretion.
To streamline the process for self-employed mortgage applicants, where The Nottingham previously required three years of accounts, this was reduced to two years or an SA302 form, dated in accordance with HMRC requirements.
The Nottingham also broadened its list of recognised organisations and qualifications for accountants.
Alison Pallett, sales director at The Nottingham, said: “We’re excited to be able to adapt our criteria as we strive to help our members in their pursuit of home ownership, and further support brokers as they work with us.
“As the economic climate remains unsteady and the impact of that is felt across the housing market, brokers will become even more important to borrowers looking to navigate this environment and find the best deal.
“This is why we want to ensure that we are always looking at ways to ensure that we are streamlining our processes.”
She added: “What’s more, the realm of employment is undergoing a transformation, with an increasing number of individuals falling into self-employed classifications.
“It is therefore crucial for the industry to respond accordingly. Our new criteria will allow more self-employed workers to access mortgage financing more easily.”
