Money Partners has confirmed details of criteria changes to the medium-to-heavy adverse products in its Origin Mortgages product suite.
As Money Marketing revealed earlier today, there are no changes to its MPL prime, near prime and near prime plus products.
On its Lite medium adverse product range, Money Partners is reducing maximum LTV for employed and self-employed from 95 per cent to 90 per cent. Maximum LTV for First Time Buyers is now 85 per cent – previously 95 per cent to 90 per cent.
Maximum LTV for Buy to Let has been reduced to 80 per cent, previously 90 per cent.
On its Flexi medium adverse product range, maximum LTV has been reduced to 80 per cent (previously 90 per cent to 85 per cent depending on employment status)
Maximum debt to income ratio has been dropped to 40 per cent (previously 50 per cent.)
On its Fresh Start 85 heavy adverse product range, maximum LTV is remaining at 85 per cent.
Money Partners is only accepting verified-income applicants, no self-certification.
Up to five missed mortgage payments in the last twelve months allowed, previously six-in-twelve. The maximum CCJ’s £20,000, this previously was unlimited.
Maximum DTIR stays at 40 per cent.
On its new Fresh Start 75 heavy adverse product, maximum LTV stands at 75 per cent. CCJs and mortgage arrears are unlimited and it is available to self-cert applicants. Maximum DTIR is 40 per cent.
Director of mortgage marketing Danny Churchill says: “Turbulence in the capital markets has led to lenders in general, and the specialists in particular, being put under pressure on two key fronts – pricing and lending criteria. Lenders of all scale and size have been impacted, and there is no sign of the market uncertainty abating.
“As a consequence, we have made a number of prudent changes to selected higher-risk products in a way that causes minimal disruption to our loyal intermediary partners. Importantly, this has not affected our core near-prime range which accounts for the bulk of our business. It also means that we continue to offer our partners, and their clients, a full range of products across the risk spectrum.”
The changes take effect from close of business on September 14.