Building Society launches new model to allow greater residential lending
A Building Society has introduced a new affordability model to raise the amount that clients can borrow.
Whilst the model launched by Coventry for intermediaries is set to benefit those earning between £25,000 and £75,000 in particular, the business’ director has stated that the change could be a positive development for those on every rung of the housing ladder.
Within a property, the change will mean that living costs of financially independent adults will no longer be taken into account when the maximum loan amount is calculated. Child benefit, however, will now be considered.
When expenditure is calculated, fewer items will be considered ‘essential living costs’.
Commenting on the new model was Kevin Purvey. The director of intermediaries said: “These are all positive changes that could make a real difference to brokers’ clients, whether they’re buying their first home, remortgaging to us, borrowing more or moving house.
“We’re confident that we’re now even more competitive in the residential market. If brokers have specific cases they didn’t think we’d be able to help with before, we’d encourage them to try our affordability calculator now these changes have been applied.”