Suffolk Building Society makes it easier for first buyers who have rented to disable a mortgage.
The lender has announced that it will borrow an income from an applicant up to 5.49 times if they have a track record to pay their rent.
Mounting lenders usually provide mortgage loans that are 4.5 times the income of the customer. However, the rules have recently been changed in this area, which means that lenders can provide more loans to borrowers who have a higher loan / income ratio.
Suffolk Building Society hopes that its change, which is being introduced today, will support more First buyers to Go on the real estate ladder.
It said that applicants must prove 12 months of paying a rental amount that there is within 10% of their potential new monthly mortgage payments.
For example, if a few pays £ 1500 rent per month, they can be considered for a monthly mortgage payment up to £ 1,650.
The same improved multiplier of 5.49 also applies to applications where at least one applicant earns more than £ 75,000. This threshold was previously set at £ 100,000.
Charlotte GrimShaw, head of intermediaries of Suffolk Building Society, said: “We are very enthusiastic to take the rental history into account for the first time, and to become a member of a very small group of lenders who offer meaningful support to first buyers.
“Many tenants have the means to meet significant monthly mortgage releases – often pay more than with a mortgage, while renting. However, a multitude of factors, such as rising house prices and higher rents have ensured that customers can often afford to rent or Save for a down paymentBut rarely both.
“The current situation has put home possession out of reach for many. The improved income multiples, in combination with other affordability tools, such as fixed rates of five years, or longer conditions for reducing monthly payments, some of our tenants should help reach their dream to buy a house.”
Leers have access to Suffolk Building Society mortgages through a broker.