The firm defines ‘out of area’ loan as one in which the property is situated outside of the society’s operating postcodes, which are DL, TS, DH, YO, SR and HG.

The standard minimum loan size of £25,000 will continue to apply to these postcodes and shared ownership products.

Mortgage applications where a decision in principle (DIP) was undertaken before 5pm 18 September 2020 will continue to be accepted.

However, all DIPs for out of area mortgages after that time will be required to meet the new minimum loan size of £100,000.

The minimum loan size applies only to new mortgage applicants.

According to the lender, the decision to increase the minimum loan size is due to an unprecedented level of demand.