Updates support visa-holding borrowers and landlords seeking higher LTV options
Pepper Money and Darlington Building Society have both announced changes to their lending criteria, aimed at improving access to mortgage products for underserved borrower groups.
Specialist lender Pepper Money is now accepting income from UK visa holders on mortgage applications up to 75% loan-to-value (LTV), provided at least one applicant has a permanent right to reside in the UK. The change applies across its full range of residential products for both purchase and remortgage.
Eligible visa types include the Tier 1 Entrepreneur Visa (for existing holders), Skilled Worker Visa, Senior or Specialist Worker Visa, Health and Care Worker Visa, and Family Visa. Applicants must have a minimum of two years’ UK employment history, have resided in the UK with a three-year address history, and present evidence of their visa status.
“As the UK continues to attract international talent across sectors like tech, healthcare and academia, it’s vital that our financial system evolves to support those contributing to the economy,” said Paul Adams (pictured left), sales director at Pepper Money.
“Enhancing our proposition to include income from UK visa holders in our affordability assessments ensures that hard-working individuals on eligible visas, who contribute to the UK economy and have established roots, aren’t excluded from homeownership.”
Darlington Building Society, meanwhile, has updated its buy-to-let offering by launching new five-year fixed-rate products and increasing the maximum LTV from 75% to 80%. The revised criteria apply to expat borrowers and holiday let investors, and are designed to give brokers more flexibility when dealing with remortgages, capital raising, or personal-use holiday lets.
Headline rates include a five-year fixed buy-to-let at 5.19% with a £999 fee, and both expat and holiday let fixed options at 5.49%, also with a £999 fee. All products come with a reduced interest coverage ratio (ICR) stress rate set at pay rate plus 1%.
The mutual maintains its existing buy-to-let policy, which include no minimum income requirement, eligibility for first-time buyers and landlords, and up to 90 days’ personal use for holiday lets.
“The increase from 75% to 80% LTV is a direct response to broker feedback and gives more room for landlords needing to raise capital or repurpose a previous residential property,” said Christopher Blewitt (pictured right), head of mortgage distribution at Darlington Building Society.
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