Afin Bank has increased its maximum loan-to-value (LTV) to 95% for its Prime and Professional mortgages and cut existing interest rates by up to 100 basis points across both ranges.
For Prime products the LTV has increased from 80% to 95% LTV with a two-year fixed rate at 6.39% and a five-year fixed rate at 6.49%.
For Professional products the LTV has gone up from 90% to 95% LTV with a two-year fixed rate at 6.24% and a five-year fixed rate at 6.34%.
Afin’s interest rates for existing Prime and Professional product ranges have been reduced by up to 100bps across its two-year fixed, five-year fixed and two-year tracker mortgages.
Two-year fixed Prime rates up to 80% LTV now range from 5.24% to 5.34%, five-year rates now range from 5.34% to 5.49% and two-year tracker rates now range 5.99% to 6.39%, with no early repayment charges.
Two-year Professional rates up to 90% LTV now range from 5.34% to 5.99%, five-year rates now range from 5.49% to 6.09% and two-year tracker rates now range from 6.09% to 6.74% with no ERCs.
In addition to introducing a maximum 95% LTV, the minimum salary requirement for a Prime mortgage will be £35,000 for sole borrowers and £60,000 for joint applicants, and customers will be able to borrow up to 4.5 times their income.
Foreign nationals can apply for an Afin mortgage with only six months UK residency.
The lender’s Professional range already offers enhanced loan-to-income (LTI) ratios of 6.5 for anyone with a recognised professional qualification, but they can now borrow with a 5% deposit with the enhanced maximum 95% LTV.
Professionals from overseas on a valid working visa will be able apply for a mortgage after only six months residency in the UK.
Afin Bank chief executive Jason Oakley says: “Brokers and customers have told us that in the current economic climate, not only do they need products designed for their specific circumstances, they also want mortgages that are more affordable, with smaller deposits.”
“These changes have been made to bring home ownership within reach of borrowers who don’t always get the support they need because their situations are a bit different. We are supporting the self-employed, qualified professionals and foreign nationals working in the UK, who are vital to the growth of our economy.”
Elsewhere, Gen H has made a series of rate changes of up to 20bps on select three-year products.
As part of the changes, two-year 85% and 90% LTV rates have increased by 10bps and two-year 95% LTV rates have gone up by 5bps.
Meanwhile, three-year 70% and 75% LTV rates have been lowered by 20bps, and all other 3-year rates are down by 10bps.
In addition, five-year 85% and 90% LTV rates have been cut by 5bps and five-year 95% LTV rates have been trimmed by 10bps.
Gen H sales and distribution Sara Palmer says: “There is a lot of uncertainty and negativity in the markets as we approach the Autumn Budget. Hopefully the cuts we’ve been able to make bring a little positivity to our broker panel and their clients.”
