Changes aim to improve access to home loans for borrowers with smaller deposits
West Brom Building Society and Newcastle Building Society have both announced updates to their mortgage criteria, aiming to make homeownership more accessible for a wider range of borrowers.
West Brom Building Society has raised its income multiple limits for customers with deposits as low as 10%. Applicants with a total income above £50,000 can now borrow up to five times their income, while those earning over £75,000 may borrow up to 5.75 times their income, up from the previous cap of 4.5 times.
These changes apply to loans up to 90% loan-to-value (LTV). The society has also increased its maximum loan size at 90% LTV from £500,000 to £750,000, and at 95% LTV from £400,000 to £600,000.
“By extending higher income multiples on lending of up to 90% LTV, we’re giving customers the opportunity to access more funds, and for some, that could mean the difference between being able to own a home or not,” said Gareth Madeley, head of product at West Brom Building Society. “With affordability remaining a stretch for many, this move will enable more first-time buyers and next time buyers to own the home they want.”
Meanwhile, Newcastle Building Society has increased its maximum LTV for standard loans from 75% to 80%, and up to 85% for part-and-part loans.
The lender has also introduced more flexible repayment options, allowing borrowers to use multiple strategies to repay their mortgage. However, clients who plan to downsize by selling an existing mortgaged property remain subject to a 60% LTV cap for interest-only loans, consistent with the mutual’s existing policy.
“We know that brokers and their clients value choice and simplicity, so by extending our interest-only LTV to 80% and accommodating multiple repayment vehicles as standard, we’re making it easier for brokers to find the right solution for those looking to move home and remortgage,” said Ben Smith, head of commercial and product development at Newcastle Building Society.
For mortgage brokers, these changes provide greater flexibility and more borrowing options for clients with smaller deposits or diverse repayment needs, making it easier to match buyers with suitable mortgage products even as affordability remains a challenge.
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