April Mortgages has increased the proportion of variable income it will use for affordability assessments from 50% to 80%.
This will include income from bonus payments, overtime and commission and will be accepted up to a maximum of 50% of basic pay.
The change will be in combination with the longer-term fixed rate lender’s criteria, which allow borrowers to access loans of up to six times income, and its Affordability+ calculator, which boosts maximum loan values by as much as 25% with a 10- or 15-year fixed rate product.
April Mortgages launched last year with fixed rate mortgage terms between five and 15 years.
James Pagan (pictured), director of product and portfolio at April Mortgages, said: “Affordability remains the hot topic across the mortgage industry, with first-time buyers and those looking for a bigger home struggling to access the loans they need.
“Having listened carefully to broker feedback, we understand this is an area where April’s unique proposition can make a real difference to UK homebuyers.”
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He added: “We’re delighted to bring this change to the market to further strengthen our growing offering and support borrowers with variable incomes to afford the home they need.
“We’ll still give all brokers an instant decision in principle before our bespoke underwriting looks at each case individually, giving clients more opportunities to borrow what they need.”
