Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Leek Building Society Updates Mortgage Criteria Across Multiple Areas

Leek Building Society has announced eight changes to its mortgage criteria, aiming to support a wider range of borrowers. The updates apply to both residential and specialist mortgage cases and are effective immediately for all new decision in principle submissions.

The changes include a revision of income criteria, with Leek Building Society now considering child benefit, Pension Credit, Carer’s Allowance, and Disability Living Allowance in full. Contractors on short-term contracts between six and twelve months will also be considered, provided they can show a continuous two-year track record in their industry.

For income verification, the requirement for employer references and P60s has been removed when assessing shift allowances and bonus income. Additionally, company accounts are no longer required from directors applying for a limited company buy-to-let mortgage.

The maximum age for earned income has been increased to 75 on all products, including interest-only mortgages. The minimum lease term has been reduced from 75 years to 50 years remaining at the end of the mortgage term, and prescriptive ground rent caps have been removed, with lease terms now considered on a case-by-case basis.

Leek Building Society has also expanded its panel of acceptable new-build warranty providers. According to the mutual, these updates are intended to give brokers more certainty at the outset of an application and allow more borrowers to be assessed on their full circumstances.

These changes may be relevant to UK letting agents and inventory clerks, particularly those involved in buy-to-let transactions, leasehold properties, and new-build developments.