Hinckley & Rugby for Intermediaries has announced improvements to its income flexibility product criteria.
The improvements to the Income Flex criteria include: For temporary workers: the maximum loan-to-value (LTV) has been increased from 75% to 80%, increasing opportunities for people working in temporary roles.
The minimum income requirement has been abolished for daily rate contractors. However, a minimum contract duration of three months still applies.
For zero-hours contractors, the LTV has increased from 75% to 80%, creating more borrowing capacity for employees with irregular working hours.
In terms of stipend income, Hinckley & Rugby will now accept 100% of stipend income with twelve months’ proof and will consider loans with LTVs up to 80% with stipend income being the primary source.
In response to industry trends, Hinckley now accepts up to 100% of tips as income, provided there is at least twelve months’ proof of payment.
And tenants’ income can now be fully utilised, up to the tax-free threshold of £7,500 per year, with primary income having to exceed this amount.
Resi options
The lender has also made changes to its housing criteria regarding construction deposits.
Where the builder makes a down payment of up to 5% of the property value, the purchase price for LTV purposes now remains unchanged.
For deposits of more than 5%, the association will reduce the purchase price accordingly.
Commenting on the changes, Hinckley & Rugby senior product and proposition manager Chris Holmes said: “Our latest updates to the Income Flex and residential products reflect our desire to support borrowers who may not fit the typical income profile.
“Whether it’s accepting tips as part of income or increasing the LTV for zero-hours contractors, we ensure our criteria are flexible enough to accommodate the modern workforce.
He added: “With the changes to builder deposits, we are also simplifying processes for new build buyers, ensuring greater clarity and easy access to higher LTV options.