Vernon updates criteria to include 40-year terms and zero-hour contracts

23 July 2018

Vernon Intermediaries has announced enhancements to its lending policy, which come into force from Tuesday 24th July.

The North-West based mutual has extended its maximum mortgage term to 40 years from 35, to take account of changing work and borrowing patterns.

Zero-hours contracts with 12 months’ history will also be considered as well as the total income from a second job, and 50% of certain State benefits.

Intermediary sales manager, Tom Gurrie, said: “Modern life constantly changes and so too should mortgage lending criteria.

“Some of the changes we are making reflect the way people work today, others are driven by our latest risk assessments but all are centred on flexible, responsible lending and supported by personal service and individual underwriting.”

The new lending policy will be in force from Tuesday, and includes the key criteria improvements below:

Maximum term increased to 40 years
Self-build available to 80% LTV
Interest-only (sale of property) minimum valuation of £350k
Debt consolidation no longer accepted
Self-employed – two years’ accounts required
Contract workers (PAYE) – minimum 12 months in role
Zero-hours contracts now considered (12 months history)
Benefits – will consider as additional income of 50%
Second job – will consider up to 100% of income
New build maximum LTV 85% for houses and apartments.

To see Vernon’s full mortgage range visit www.thevernon.co.uk/MortgageIntermediaries