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.
West One has raised its standard residential mortgage loan-to-income cap from 5.0 to 5.5 times income, applying to purchases and remortgages across all core credit tiers. Meanwhile, Santander will cut mortgage rates from Friday 20 May by up to 27 basis points across a range of products.
West One’s increased loan-to-income cap is available for purchases and remortgages, including Right to Buy purchases, but excludes Shared Ownership products. The lender states that this move is intended to support borrowers who may be underserved by mainstream lenders. The change applies across Premier, Platinum, and Prime Plus core products.
Additionally, West One has expanded its Automated Valuation Model (AVM) criteria for remortgage customers. The maximum AVM loan size has increased from £300,000 to £500,000, and the maximum loan-to-value ratio has risen from 70% to 75%. Underwriters will assess AVM eligibility early in the application process, and cases approved for AVM can proceed without a physical valuation.
For letting agents and inventory clerks, these changes may impact the speed and accessibility of mortgage approvals for clients, particularly those seeking remortgages or purchasing through Right to Buy schemes.
Santander is set to reduce mortgage rates by up to 27 basis points from 20 May. The reductions cover first-time buyer, home mover, and remortgage fixed and tracker products, available through brokers and direct channels. New remortgage deals include a 4.62% two-year fixed rate at 60% loan-to-value (LTV) with a £999 fee, a 4.74% two-year fixed rate at 75% LTV, and a 5.15% equivalent at 90% LTV. First-time buyer products saw cuts of up to 23 basis points across selected two-, three-, and five-year fixed rates. Home mover products were reduced by up to 24 basis points, and two-year tracker rates were cut by as much as 19 basis points. Remortgage rates also fell across two-, three-, five-, and ten-year fixed products, with two-year tracker rates dropping by up to 27 basis points.
Source: Mortgage Strategy