Hanley Economic Building Society has updated its residential lending criteria to give brokers more flexibility with cases that do not fit standard rules.
The main change is removing fixed loan-to-income (LTI) caps, meaning affordability will now be judged on a full review of income and outgoings, not just a set multiple.
Self-employed applicants with one year of trading and relevant experience can now be considered.
Contractors with at least 12 months’ experience and four weeks left on their contract, or proof of renewal, are eligible, and multiple contracts can be assessed.
Income from a second job is accepted after 12 months for employed applicants or 24 months for self-employed, with a limit of 50 working hours per week.
Overtime is allowed if there is two years of evidence.
Applicants in probationary periods are accepted if they have at least one year in a similar job.
Up to 50% of certain benefits, including Attendance Allowance, Carer’s Allowance, PIP, Disability Income Support and Universal Credit, can be counted towards income.
The society has also removed hard equity requirements for interest only mortgages.
Each application is individually assessed by the in-house underwriting team and there is no credit scoring.
Ollie Slimm (pictured), head of credit risk and lending strategy at Hanley Economic Building Society, said: “Our focus is on shaping our criteria to mirror the realities of modern working lives.
“By introducing greater flexibility around how we assess income, employment and affordability, we’re giving brokers more scope to place those cases that need closer consideration.
“Each client’s circumstances are unique, and we’re here to support our intermediary partners in finding the most suitable route forward.”
