Hanley Economic Building Society has revamped its lending criteria to implement a range of changes designed to support a wider range of borrower needs.
The changes include the abolition of fixed loan-to-income limits on the society’s housing supply.
Affordability will now be assessed against a more rounded view of income and expenditure, rather than being limited by a fixed multiple.
Self-employed candidates with one year of trading experience and relevant experience may now be considered, as well as daily wage workers with at least twelve months of experience and at least four weeks remaining on their contract (or proof of renewal) are now eligible.
In addition, income from a second job is accepted after 12 months (employed) or 24 months (self-employed), with a maximum of 50 working hours per week. Overtime is also taken into account with two years of proof.
Candidates on a probationary period will be accepted if they have worked in a comparable position for at least one year. Candidates with up to 50% of certain benefits can also be included.
The association has also abolished the strict capital requirements for interest-only mortgages.
All applications are assessed individually by the internal underwriting team, without a credit score.
Hanley Economic Building Society head of credit risk and credit strategy Ollie Slimm says: “Our focus is on shaping our criteria to reflect the realities of modern working life. By introducing more flexibility around the way we assess income, employment and affordability, we are giving agents more scope to place those cases that require further consideration.”
“Each customer’s circumstances are unique and we are here to support our intermediary partners in finding the most appropriate route forward.”