Yorkshire Building Society has changed the affordability calculation it uses to work out mortgage loan sizes.
The building society is reducing its loan-to-income cap to a standard 4.49 times single and joint incomes for all borrowers to "maintain service levels and retain the broadest range of products possible".
The maximum loan size limits will apply across the YBS Group and will include Yorkshire Building Society, Accord Mortgages and Chelsea Building Society. Any decision in principles submitted up to 8 pm on Tuesday 20 October will be honoured under the standard current residential affordability calculations subject to 30 day validity period.
Aaron Strutt, product director at Trinity Financial, says: "More of the lenders are reducing their income multiples and it is getter harder to secure income stretch mortgages without a larger deposit or bigger salary. Accord Mortgages is the broker lending arm of the Yorkshire, and it was providing five times salary mortgages for borrowers earning £60,000 with a 15% deposit.
"Barclays recently reduced its maximum income multiple from 5.5 times income to 4.49 times income to ensure it did not breach the Prudential Regulation Authority's lending limits."
Yorkshire's temporary changes will only impact new business and new applications for additional loans.
Call Trinity Financial on 020 7016 0790 to secure a more generous mortgage or book a consultation
Accord Mortgages is the broker lending arm of the Yorkshire Building Society and Trinity's brokers help borrowers secure their mortgages.
Accord's USPs include:
- The lenders can use 60% of an applicants latest years bonus
- Offer a maximum mortgage term of 40 years up to the age of 80
- Lend to borrowers changing from PAYE to LLP
- Work out the maximum loan size on the contractors day rate and will consider umbrella companies and covid gaps
- Accept new jobs starting within the next three months
- Does not need applicants to have a minimum time in the UK
- Provides large mortgage loan at 85% ltv and £2 million
- Launched new 10% deposit deals and will consider flats when its products launch every ten days
Call Trinity Financial on 020 7016 0790 to secure a mortgage