Newcastle withdraws guarantor mortgages.
The Newcastle Building Society has announced that its residential lending policy has changed.
The lender advises that its guarantor mortgages have been withdrawn from its range and changes have been made regarding the assessment of self-employed borrowers and second properties.
For self employed applicants mortgage affordability assessment has changed. Now either two years accounts or an HMRC tax assessment will be required. Also if the two year average profit is shown to be declining only the most recent tax year will be used for affordability. If this is the case then an accountant’s projection will be requested for the forthcoming year.
Newcastle has also changed its policy on the assessment of applications for individuals who have taken out one or more payday loans in the previous six month period. Applications will now be passed on to an underwriter.
For those applicants who own a second property now Newcastle will ask for one months bank statement proving rent has been paid in rather than asking for proof of 12 months rent.
In addition the number of individuals allowed on a mortgage has been cut down to two.
If you want a review of the entire market to find the most competitive mortgage for your circumstances call a Deal Direct adviser on 0800 048 8828.
