We are implementing the credit criteria changes detailed in the attached.

In addition, please note the following updates to our Loan to Income (LTI) and adverse credit criteria. Please ensure the relevant criteria and guidance are updated accordingly.

Loan to Income (LTI)

Standard applications: Maximum 4.49x income, unless:

• Sole applications: Where income is £50,000 or greater, LTI can be up to 5.99x.
• Multiple applicants: Where combined income is £70,000 or greater, LTI can be up to 5.99x (up to four applicants).
• The above also applies to JBSP applications, including the non-occupier’s income.

Key Worker applications: Maximum 5.49x income.

Professional applications: Maximum 5.99x income.

£4£ remortgage applications: No LTI cap.

Adverse Credit Tiers

The following changes also take effect:

• Historic CCJs: No longer need to be settled.
• Revolving credit and unsecured loans: Removed from the adverse credit criteria matrix.
• F2 & F3 Mortgage Arrears: Updated to 0 in the last 12 months / 1 in the last 24 months.
• Defaults: The £250 default waiver is now unrestricted and is no longer limited to utilities/communications.
• F4: Removed, creating a wider F3 category.