Newcastle Intermediaries has made changes to its lending policy, including its approach to furloughed workers.
The applicants who are currently furloughed now need to provide written confirmation from their employee that they will be returning to work by the end of October alongside details of their salary.
Newcastle for Intermediaries will be reducing the percentage(it takes for affordability) to 25% for those who receive additional income, such as bonuses and commission. However, the applicant must provide evidence of track record of earnings to support this.
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Additionally, applicants on a fixed-term contract that finishes within the next six months will need to be able to show proof of contract extension or that they have a new contract, including salary and term details.
The lender will also no longer be accepting applications from people who are on zero-hour contracts.
Further, the maximum LTV for the new build houses will be 80% and for flats, it would be 75%.
Finally, another change to the lending policy is for the applicant who has taken a mortgage payment deferral. They will have to provide reasons for doing so. The lender requires the evidence to keep the ability to service the loan unaffected.