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Lending Criteria Update from Dudley Building Society.

04 January 2017

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Dudley Building Society have made some changes to their Lending Criteria. An overview of all of the changes can be seen below.

Income:

  • Removal of maximum LTV limits when using benefits in affordability assessment e.g. child benefit, working tax credit and disability allowance
  • Now accepting income from lodgers subject to policy and maximum LTV
  • Now accepting Zero hours contracts subject to policy and maximum LTV
  • Self-employed income with more than 25% increase – Discretion to use latest year figure; please refer to DBS
  • Child-minders – Removal of restriction on the number of children minded

Credit History:

  • Pay day loans – Discretion to accept as long as there is clear rationale.

Property:

Leasehold flats

  • Capital & Interest – 85 years on lease to remain at start of term.
  • Interest only below 50% LTV – 85 years on lease to remain at start of term.
  • Interest only above 50% LTV – 85 years on lease to remain at end of term.

Flats above commercial premises

  • A flat above a shop or other business premises will be considered, where the shop directly below or the one below either side does not have any potential impact on future saleability

Local authority flats

  • They may consider lending on properties within the M25, subject to maximum 65% LTV.
  • They will only lend above 4 storeys if built in or after the year 2000.

General:

  • Property Title
    • The Society will consider in the name of a borrower who will not be named on the Title of the property. Legal advice will be required

  • Interest only, downsizing
    • No minimum equity requirements but they will asses whether this is plausible by obtaining a minimum of 2 comparables within a 3 mile radius.

  • Ex Pats
    • Change to how they calculate minimum income for Ex Pats– They will use the highest exchange rate for the last 5 years and an in-built contingency of 10% will be applied.

  • Guarantors
    • They will provide borrowing facilities where the guarantor is a non-relative, subject to a satisfactory explanation

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