Hanley Economic Building Society has updated its residential lending criteria to broaden the type of borrowers it can support and to give intermediaries more scope when placing cases that fall outside standard parameters.
A central change is the removal of fixed loan-to-income caps across the residential range. The Society will now assess affordability through a fuller view of income and expenditure. This adjustment is intended to help brokers working with clients whose financial patterns do not always follow a straightforward structure.
The Society outlined several key updates that expand eligibility and offer added flexibility. For example, applicants who are self-employed may now be considered with one year of trading and relevant experience. Contractor cases are also included, with eligibility for day-rate workers who have at least 12 months of experience and a minimum of four weeks left on their contract or evidence of renewal. Multiple contracts can be taken into account during assessment.
Income from additional work is also incorporated. Applicants can use income from a second job after 12 months of employment or 24 months if self-employed, provided total working hours do not exceed 50 each week. Overtime is considered when supported by two years of evidence.
Other updates include acceptance of applicants who are in a probationary period, as long as they have spent at least one year in a comparable role. Up to 50% of a range of benefits can be included in affordability evaluations. The Society has also removed hard equity requirements for interest-only mortgages under its enhanced repayment vehicle approach.
All cases continue to be individually assessed by the in-house underwriting team, and credit scoring is not used.
Ollie Slimm, head of credit risk and lending strategy, said, “Our focus is on shaping our criteria to mirror the realities of modern working lives,” said Ollie Slimm, head of credit risk and lending strategy. “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.”
