Central Trust and Mercantile Trust have made a series of changes to their lending criteria, which will see the maximum loan to value the lenders will offer in Northern Ireland cut to 70%.    

The intermediary lending brands of the Norfolk Capital Group of Companies have also lifted the minimum valuation required throughout the whole of the UK to £75,000.  

Other criteria changes that apply to Central Trust mean that loans of £100,000 and above are now available to 65% LTV, while minimum income has been increased to £22,500.  

The lender has also reduced its maximum advance to £150,000, although the minimum time in employment for a customer is now six months, and has also removed its status 4 tier.  

Other criteria changes that apply to Mercantile Trust sees the introduction of a minimum income of £22,500 for first-time buyers and first-time landlords.  

The business adds that first charge bridging and buy-to-let term’s maximum advance has been cut to £500,000, while second charge bridging and BTL term’s minimum advance is reduced to £150,000.  

The move by the lenders comes after new Chancellor Jeremy Hunt last month reversed the vast majority of tax cuts announced in September’s mini-budget, although the stamp duty cut for house purchases remains.               

The mini-budget led to more than a thousand products being pulled as lenders worked out how to reprice loans as the cost of debt for the government and companies lifted on international money markets, following former Chancellor Kwasi Kwarteng’s tax-cutting fiscal event.    

Central Trust and Mercantile Trust commercial operations director Maeve Ward says: “We have made these criteria changes in response to current market conditions.   

“While there is much uncertainty in the market at the current time, we have acted prudently so we can continue to offer products which serve the underserved, as well as those that need to repair and rebuild, and those who have been the victim of circumstance and require a second chance.   

“Advisers that submit cases to us will find that we are still willing to listen to the applicant’s story and apply a common-sense approach to lending.”