Atom bank has made criteria changes across its mortgage range to improve affordability for customers.
The digital bank has increased its maximum loan to £1m for 80% and 85% Prime products and up to £750,000 for 90% and 95% Prime products.
Income multiples for self-employed applicants have changed from 4.49x to 5.5x for those with a single income of £75,000, or a joint income of £100,000.
To help those who work in jobs with variable income, Atom also increased allowable variable income from 50% to 70%.
Atom made the changes to cater for customers who don’t qualify for products attached to the mortgage guarantee scheme which is capped at a property value of £600,000.
The bank hopes the changes to the max loan amount will benefit those in London and the South East in particular, where ONS data shows house prices in the capital stand at around £528,000 on average.
To further help borrowers, Atom has today decreased the rates across a number of its mortgage products. Selected Prime rates will see reductions of up to 0.25% to make them more competitive in the market.
Richard Harrison, head of mortgages at Atom bank, said: “We are always looking to enhance our proposition so it’s easier for people to make home ownership a reality, so it’s great to be announcing the criteria changes we have made alongside some rate reductions, which we think can make a significant impact.
“Clearly, it’s tough for buyers right now, with financial headwinds making it difficult to make the leap from renter to homeowner.
“We think the increased max loan amount can help a lot of first-time buyers, particularly those who won’t qualify for products attached to the mortgage guarantee scheme. This will also benefit those customers living in places like London and the South East, where house prices tend to be higher.”
He concluded: “Affordability for the self-employed and those with variable income can also be a particular challenge in these regions, so we hope the changes we have made for these groups will make getting on the ladder that little bit easier for them.”
