Afin Bank has increased its maximum Loan-to-Value (LTV) for its Prime and Professional mortgages to 95% and reduced existing interest rates for both ranges by up to 100 basis points.
For Prime products, the LTV has increased from 80% to 95% LTV with a two-year fixed rate of 6.39% and a five-year fixed rate of 6.49%.
For professional products, the LTV has increased from 90% to 95% LTV with a two-year fixed interest rate of 6.24% and a five-year fixed interest rate of 6.34%.
Afin interest rates for the existing Prime and Professional product ranges have been reduced by up to 100 basis points for the two-year fixed, five-year fixed and two-year tracker mortgages.
Two-year fixed Prime rates up to 80% LTV now range from 5.24% to 5.34%, five-year rates now range from 5.34% to 5.49% and two-year tracker rates now range from 5.99% to 6.39%, with no early repayment fees.
Two-year professional rates up to 90% LTV now range from 5.34% to 5.99%, five-year rates now range from 5.49% to 6.09% and two-year tracker rates now range from 6.09% to 6.74% without ERCs.
In addition to the introduction of a maximum LTV of 95%, the minimum salary requirement for a Prime mortgage will be £35,000 for sole borrowers and £60,000 for joint applicants, and customers will be able to borrow up to 4.5 times their income.
Foreigners can apply for an Afin mortgage with a stay of just six months in the UK.
The lender’s Professional range already offers improved loan to income ratios (LTI) of 6.5 for anyone with a recognized professional qualification, but they can now borrow with a 5% deposit with the improved maximum LTV of 95%.
Professionals from abroad with a valid work visa can apply for a mortgage after just six months in Britain.
Jason Oakley, CEO of Afin Bank, said: “Brokers and customers have told us that in the current economic climate they not only need products designed for their specific circumstances, but also want mortgages that are more affordable, with smaller deposits.”
“These changes have been made to bring home ownership within reach of borrowers who don’t always get the support they need because their situation is a little different. We are supporting the self-employed, qualified professionals and foreigners working in Britain who are essential to the growth of our economy.”
Elsewhere, Gen H has implemented a series of rate changes of up to 20 basis points on select three-year products.
As part of the changes, the two-year 85% and 90% LTV rates increased by 10 basis points and the two-year 95% LTV rates increased by 5 basis points.
Meanwhile, the three-year 70% and 75% LTV rates have been reduced by 20 basis points, and all other three-year rates have been reduced by 10 basis points.
In addition, the five-year 85% and 90% LTV rates have been reduced by 5 basis points and the five-year 95% LTV rates have been reduced by 10 basis points.