Coventry relaxes mortgage lending criteria

Search supported by
Coventry relaxes mortgage lending criteria

Coventry Building Society has said it is changing its affordability criteria for mortgages through its for Intermediaries arm.

Kevin Purdey, director of intermediaries for the lender. said the society has improved its affordability model in a way that could make "a real difference" to the maximum amount clients could borrow, especially those earning from £25,000 to £70,000.

Mr Purdey said: "We are confident that we are now even more competitive in the residential market.

"If brokers have specific cases they didn't think we would be able to help with before, we would encourage them to try our affordability calculator now these changes have been applied."

The changes include no longer taking into account the living costs of financially independent adults living in the property, while the model also takes child benefit into account when calculating the maximum loan amount.

The lender has also reduced the number of items that are now considered essential living expenses.

Jane King, mortgage broker from Ash Ridge Asset Management in London, said this was good news as Coventry had always been quite strict when it comes to mortgage affordability

She said: "They are quite strict on income multiples - quite nitpicky.

"Most lenders now do make an allowance for dependent adults, which can really bring affordability down, because it is about £500 a month.

"This is a really good thing from an affordability point of view."