Lender raises LTV limits and broadens eligibility criteria
Clydesdale Bank has revised its mortgage lending criteria for foreign nationals, with the changes taking effect immediately.
Under the new policy, the bank has broadened eligibility for applicants who do not hold indefinite leave to remain (ILR) or settled or pre-settled status. The maximum loan-to-value (LTV) ratios have been increased, the range of acceptable visa types has been expanded, and the minimum remaining time required on a visa has been reduced.
For joint mortgage applications where one applicant has ILR and the other does not, borrowing is now permitted up to 95% LTV without a minimum income requirement. Where neither applicant holds ILR, lending is available up to 85% LTV, also with no minimum income requirement. This threshold rises to 90% LTV if at least one applicant earns £75,000.
For buy-to-let mortgages, the maximum LTV is now 80%. At least one applicant must be an owner-occupier. If no applicant has ILR, one must have an income of at least £75,000. Where one applicant holds ILR, there is no minimum income requirement. If an applicant’s income is being considered and they are on a visa, there must be at least nine months remaining on a visa type accepted by the lender.
Applications from customers with settled or pre-settled status will continue to be assessed as if they hold ILR. All applicants, regardless of nationality, must have lived in the UK for the past three years.
These new updates to mortgage lending criteria follow last week’s changes to the bank’s self-employed policy, which include a reduced minimum trading period of two years, an increased loan-to-income cap of five times, and updated criteria for assessing limited company director income.
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