Hanley Economic removes fixed LTI caps in criteria overhaul

Hanley Economic Building Society has refreshed its lending criteria, introducing a series of changes designed to support a wider range of borrower needs for cases that fall outside the norm.

The headline change is the removal of fixed loan-to-income caps across the Society’s residential range. This shift means affordability will now be assessed through a more rounded view of income and outgoings, rather than being restricted by a fixed multiple. The aim is to give brokers more scope when dealing with clients whose finances do not always follow a straight line.

Self-employed applicants with one year of trading and relevant experience may now be considered and day-rate workers with at least 12 months’ experience and a minimum of four weeks left on their contract (or proof of renewal) are eligible. Multiple contracts can be assessed.

Income from a second job is accepted after 12 months (employed) or 24 months (self-employed), with a cap of 50 working hours per week. Overtime is considered with two years of evidence.

Applicants in probationary periods are accepted if they have at least one year in a similar role.

For benefit income, up to 50% of certain benefits (e.g., Attendance Allowance, Carer’s Allowance, PIP, Disability Income Support, Universal Credit) can be included.

The Society has also introduced an enhanced repayment vehicle, removing hard equity requirements for interest-only mortgages.

All applications are individually assessed by the in-house team underwriting team, with no credit scoring. 

Ollie Slimm, head of credit risk and lending strategy at Hanley Economic Building Society, commented: “Our focus is on shaping our criteria to mirror the realities of modern working lives. By introducing greater flexibility around how we assess income, employment and affordability, we’re giving brokers more scope to place those cases that need closer consideration. Each client’s circumstances are unique, and we’re here to support our intermediary partners in finding the most suitable route forward.”