Coventry for Intermediaries has made changes to its affordability model which mean that residential customers could now borrow more.
The lender says its changes could make a real difference to the maximum amount clients could borrow, especially those earning from £25,000 to £70,000.
When looking at cases where another financially independent adult apart from the borrower also lives in the property, for example a grown-up son or daughter, that person’s living costs will no longer be taken into account when calculating the maximum loan amount.
Coventry will also now take child benefit into account when looking at income.
Finally the lender has revised what it classes as “essential living costs” so that few items have to be included in the expenditure calculations.
Director of intermediaries Kevin Purvey says: These are all positive changes that could make a real difference to brokers’ clients, whether they’re buying their first home, remortgaging to us, borrowing more or moving house”.
“We’re confident that we’re now even more competitive in the residential market. If brokers have specific cases they didn’t think we’d be able to help with before, we’d encourage them to try our affordability calculator now these changes have been applied.”
