Mortgage lenders are relaxing their lending policy in specific areas to broaden access to mortgages for professionals
While the headlines remain fixated on the ups and downs of the Base Rate and mortgage pricing, there is a quieter, yet arguably more significant shift happening in the background: lenders are actively widening their doors.
For professionals, contractors, and high earners, the "headline rate" is often secondary to the lending criteria itself. After all, the lowest rate in the world is of little use if the lender won't accept your income structure or allow you to borrow the amount you need to secure your ideal home.
At Cleerly, we specialise in navigating these complex criteria. In recent weeks, we have seen a wave of positive adjustments from major lenders designed to help professionals leverage their true earning power. Here is a breakdown of the latest enhancements and what they mean for you.
Foreign Nationals: A Broader Welcome
For international professionals contributing to the UK economy, securing a mortgage has historically been hurdle-ridden, often requiring high minimum incomes or substantial deposits. We are pleased to see major high-street names relaxing these rules.
Halifax has significantly broadened its criteria for non-UK nationals. Previously, the income bar was set quite high, but under the new changes, the minimum income requirement has been lowered for applicants who have lived in the UK for at least 12 months. This opens up mainstream lending products to a much wider pool of professionals on visas who previously might have been forced towards specialist lenders.
Similarly, Accord Mortgages has enhanced its offering for foreign nationals. They have aligned their criteria to support those with a track record of residency and income in the UK, making it easier for skilled workers to put down roots without needing indefinite leave to remain (subject to loan-to-value caps and income thresholds).
Maximising Borrowing Power
One of the most frequent frustrations for professionals is the gap between what you earn and what a computer algorithm says you can afford. Lenders are increasingly recognising that professional career paths offer stability and growth that standard calculations miss.
Principality Building Society is the latest to step up, increasing their lending multiples for qualified professionals. By allowing eligible applicants to borrow up to 5.5 times their income, they are helping buyers bridge the gap between their salary and current property prices. For a professional earning £60,000, that extra leverage can mean the difference between a flat and a house.
Skipton Building Society has also made a move that will be music to the ears of our contractor clients. They have removed the minimum income requirement for contractors—a rule that often unfairly penalised those with efficient tax structures or gaps between contracts. Furthermore, they have increased their Loan-to-Income (LTI) cap to 5.5x, ensuring that IT contractors and locums can borrow a sum that reflects their daily rates, not just their taxable salary.
Common Sense for "Life Events"
Finally, we know that a professional career doesn’t always mean a perfect credit history. Life events—divorce, disputes, or administrative errors—can leave marks on a credit file that linger long after the issue is resolved.
Metro Bank has updated its approach to adverse credit, taking a much more pragmatic view. Under their enhanced criteria, they can now often ignore adverse credit history if it occurred more than three years ago. This "common sense" approach is vital for applicants who have rebuilt their financial stability but are still being haunted by historic data.
What This Means for You
These changes represent a clear appetite from lenders to do business with professionals. Whether you are a foreign national, a contractor, or someone looking to maximise your borrowing potential, the "No" you might have received six months ago could be a "Yes" today.
Criteria changes move fast, and they are rarely advertised on comparison sites. If you want to know how these new rules apply to your specific situation, get in touch with the team at Cleerly.
Contact Cleerly to discuss your situation and see how these updates could improve your borrowing potential.