"While there is much uncertainty in the market at the current time, we have acted prudently so we can continue to offer products which serve the underserved"
Central Trust and Mercantile Trust have announced changes to their lending criteria.
The maximum LTV the lenders will offer in Northern Ireland has been reduced to 70% LTV, while the minimum valuation required throughout the whole of the UK has been increased to £75,000.
Across Central Trust's other criteria changes, loans of £100,000 net and above are now available to 65% LTV. The minimum income has been increased to £22,500 and the maximum advance has been reduced to £150,000.
In addition, the status 4 tier has been removed and the minimum time employed is now six months.
Mercantile Trust has introduced a minimum income of £22,500 for first-time buyers and first-time landlords. For first charge bridging and buy-to-let the maximum advance has reduced to £500,000 and for second charge bridging and buy-to-let the minimum advance reduced to £150,000.
Maeve Ward, commercial operations director at Central Trust & Mercantile trust, commented: “We have made these criteria changes in response to current market conditions. While there is much uncertainty in the market at the current time, we have acted prudently so we can continue to offer products which serve the underserved, as well as those that need to repair and rebuild, and those who have been victim of circumstance and require a second chance.
“Advisers that submit cases to us will find that we are still willing to listen to the applicant’s story and apply a common sense approach to lending.”
