Product Watch: a round up of this week's criteria changes

Nationwide for Intermediaries

Nationwide will accept foster care income in its affordability calculations treating this as self-employed income. The borrower needs to supply a letter from the Foster Agency confirming the total income paid for each of the last two yrs and that the most recent year’s figures are likely to continue. Other lenders who also accept foster care income are Halifax, Santander and NatWest.

Nationwide is also very good at looking at taking maintenance into consideration with a court order or letter from private arrangement. It must however have a six month’s track history of being paid. Other lenders who are good at accepting maintenance are Halifax, Santander, NatWest, Platform, Leeds and Metro Bank.

NatWest

Its affordability calculator has made some positive adjustments for applicants who have existing credit commitments. This means brokers are finding that NatWest can lend more than they used to for these clients

Santander for Intermediaries

Its buy-to-let rental calculation has been reduced recently to 125% at 5% but they do factor in one month rental void period and other regular payments such as ground rent and property maintenance charges. Other good rental calculations are Hinckley & Rugby at 135% of product pay rate and Precise and Aldermore who also have pay rate calculations.

Halifax

Halifax will take any existing mortgage payments that are being retained and not let out as a credit commitment in their affordability calculations and do not look at the total indebtedness of the client. Other lenders that also do this are Kensington, Metro Bank, Skipton, Coventry, Santander and Woolwich.

Platform

Overall Platform’s affordability calculations have been coming out very positive and for clients who are struggling to meet other lenders’ requirements they are a good fall-back option. Other lenders who are strong on affordability are NatWest and Santander.