Vida Homeloans has updated its residential lending criteria, increasing the maximum loan-to-value (LTV) to 90% for purchase at undervalue cases.

The lender will increase the maximum advance to 100% of the discounted purchase price for landlord-to-tenant purchases, subject to a maximum of 90% of the open-market value.

For landlord-to-tenant purchases, the customer must have rented the property for at least 12 months.

Eligible family transactions include purchases from parents, siblings, children, grandparents, aunts and uncles, cousins, nieces and nephews and certain other qualifying relatives.

Meanwhile, Vida has also announced is will change its income criteria by increasing the proportion of Universal Credit that can be considered for affordability from 50% to 75%.

This excludes any housing allowance or any child element where the child/children are over 12 years old at application.

The lender is also reducing the supporting evidence requirement from 12 months to three months of Universal Credit award statements.

Universal Credit must not be the applicant’s main source of income and is assessed individually.

The lender says the changes are designed to give brokers greater flexibility when supporting customers with a wider range of circumstances.

Vida Homeloans mortgage product management managing director David Angel says: “Our intermediary partners have told us that customers needed more support with undervalue transactions, with family members or landlords not able to give a 25% reduction on the purchase price. ”

“So, I’m delighted we’re able to announce the improved policy today, that will give brokers and their clients more options. These changes, together with the improved Universal Credit assessment strengthen our criteria and help brokers support a wider range of customers.”