Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
Atom Bank Raises LTI Limits for Prime and Near Prime Mortgage Products
Atom bank has increased the loan-to-income (LTI) limits on its prime and near prime mortgage product ranges for loans up to 90% loan-to-value (LTV). This change is intended to improve affordability for borrowers with household incomes between £45,000 and £60,000.
According to Atom bank, the increased LTI will allow eligible applicants to raise their maximum loan amount by between £23,000 and £31,000. The prime product range is available to applicants with no defaults in the last 36 months and no more than one default between 37 and 72 months ago. Any unsatisfied defaults must have a combined value of no more than £500 per applicant.
The near prime range is designed for borrowers with a light adverse credit history or thin credit files. Criteria for this range include no county court judgments (CCJs) in the last 36 months, and no more than one CCJ in the last 37 to 72 months, with a value of no more than £500 for unsatisfied CCJs. Additionally, applicants must have no mortgage arrears in the last 12 months, and no more than two months of mortgage arrears in the last 13 to 24 months.
These changes may be relevant to letting agents and inventory clerks monitoring mortgage product developments, as they could impact the ability of tenants and prospective buyers to secure higher loan amounts, particularly those with moderate incomes or minor credit issues.
Source: Mortgage Strategy