Kensington Mortgages has announced it will be increasing its maximum loan limit for both first time buyers and buy to let mortgages. Having raised the maximum loan on buy to let mortgages to £1.5 million from £1 million, first time buyer loan values have also now increased to a maximum of £1 million – up from the previous £500,000 limit.
Not only this, Brightstar Financial has become the first distributor to add Kensington to its lending panel, offering all of the lender’s core residential and buy to let ranges, as well as a new 90% loan to value (LTV) residential exclusive product.
Rates on this new product start from 4.89% for a 2 year fixed rate and 5.19% for a 3 year fix.
It seems Kensington is not the only lender reworking its lending criteria and reach this week. Leeds Building Society has also announced it will now be accepting sale of property as a repayment method for some interest only borrowers.
This new method is currently available to those on part interest only, part repayment mortgages at up to 75% loan to value (LTV). This has proved a popular demand of customers looking to remortgage, as it offers the flexibility of paying down the loan in a manageable way for those already on full interest only terms.
Finally, Virgin Money has announced a maximum loan to income multiple of four times for loans over £500,000. However, the lender said this is only expected to impact a very small proportion of its lending, as far as larger loans are concerned, and will continue to offer competitive loan amounts to higher earning customers.
Following other changes that are expected to increase affordability for its clients, this is thought to impact less than 1% of Virgin’s overall lending. The lender will now consider the higher levels of disposable income when assessing affordability for clients with an income above £40,000.