Vida has introduced two changes to its lending criteria intended to widen access to homeownership and give intermediaries greater flexibility when supporting foreign national and credit-impaired borrowers.
The lender said the enhancements are part of its mission to help more individuals and families across the UK secure a place to call home.
The first change introduces a foreign nationals affordability enhancement. For joint applications where at least one borrower does not have permanent rights to reside and the LTV is above 75%, Vida has reduced the minimum income eligibility by allowing a combined total income of £70,000.
Previously, the main borrower needed to earn at least £50,000 individually. Vida said applications remain acceptable where the main borrower earns £50,000 and the combined income is below £70,000.
Vida has also increased the threshold for excluding CCJs and defaults when allocating product tiers from £250 to £500 across all product tiers.
The threshold for disregarding unsecured missed payments under £250 remains unchanged. The lender said the adjustment is intended to support borrowers whose historic credit issues are small in scale while retaining a responsible lending approach.
Ross Williams, head of mortgage product management at Vida Homeloans, commented: “The affordability enhancement builds on the improvements we’ve delivered for Foreign National customers.
“It means that couples applying together can combine their incomes to meet eligibility requirements, providing greater flexibility and opening more opportunities for Foreign National customers looking to secure a mortgage in the UK.
“By increasing the thresholds for CCJs and Defaults we disregard, we’re making it easier for customers to secure a mortgage without being held back by historic issues, while maintaining responsible lending standards.”
