Vida Homeloans has relaxed its residential affordability assessment, allowing customers to borrow more than £17,000 on shorter fixed-rate products.
The professional lender says its new calculations are for first-time home buyers, home movers and re-contenders.
These changes could mean that two applicants earn £25,000 a year each year, repaying £300 a month for 25 years without family members, and now £17,200 can be borrowed under the new standard.
“Affordability remains one of the biggest obstacles to home ownership and at VIDA we are committed to addressing it head-on,” said Ross Williams, head of mortgage product management at Vida Homeloans.
The companies’ moves came after financial conduct authorities said in March that lenders were “too cautious” to grant FTB home loans under current rules.
VIDA has also launched a range of limited edition purchases with a loan of 75% to value, available over a five-year fixed term.
These products have a fee selection of 4% and 7% and prices start at 3.90% – designed to provide greater flexibility and value for landlords seeking to optimize their portfolios.
Brokers can contact their V-Hub portal for case discussions, where they can directly access the company’s team of experts and underwriters, the lender added.
