Find out the latest updates from Virgin Money, Clydesdale, Accord, and RAW Capital Partners
Several lenders have announced changes aimed at improving mortgage accessibility for a wider range of borrowers, including first-time buyers, high earners and overseas investors.
Virgin Money and Clydesdale Bank have reduced the stress rate used for assessing residential mortgage applications on variable and fixed rate products with terms under five years. Clydesdale Bank has also improved its buy-to-let affordability assessment. The changes are expected to increase maximum borrowing capacity for clients.
“Applicants can borrow more than they could before,” the lenders stated, adding that in a typical case involving joint borrowers earning £85,000, maximum borrowing could rise by as much as £40,000. Higher earners may see proportionately greater increases, particularly through Clydesdale Bank’s proposition.
Accord Mortgages, meanwhile, has increased its maximum loan amounts and extended 95% loan-to-value (LTV) lending to new build homes.
The intermediary-only lender raised its cap for loans between 75% and 85% LTV to £2.6 million. For borrowers between 85% and 90% LTV, the maximum rises from £750,000 to £1 million. For those borrowing between 90% and 95% LTV, the cap increases to £750,000 from £600,000.
Accord has also raised its maximum LTV for new build houses from 90% to 95%. The changes are part of broader efforts to support buyers facing affordability challenges, particularly in high-cost areas.
RAW Capital Partners is also updating its terms. From July 1, the Guernsey-based firm will increase its maximum LTV from 55% to 70% for all first charge loans through its RAW Mortgage Fund.
The lender, which focuses on UK expats, foreign nationals and Channel Islanders, said the change simplifies its offering while maintaining features such as no stress testing and quick decisions in principle.
Brokers will still be able to combine the updated LTV limit with its other core offerings, the lender said.
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