The improvements to the Income Flex criteria include: For agency workers: maximum loan-to-value (LTV) has increased from 75% to 80%, enhancing opportunities for those employed in temporary roles.

For day rate contractors the minimum income requirement has been removed. However, a minimum contract term of three months is still required.

For zero-hour contractors, the LTV has increased from 75% to 80%, offering more borrowing capacity for workers with irregular hours.

With regard to stipend income, Hinckley & Rugby will now accept 100% of stipend income with 12 months’ evidence and will consider loans with LTVs of up to 80% where stipend income is the primary source.

Responding to industry trends, Hinckley will now accept up to 100% of tips as income, provided there is a minimum of 12 months’ evidence of payments.

And lodger income can now be fully utilised, up to the government’s tax-free threshold of £7,500 per annum, with the primary income required to exceed this amount.

Resi options

The lender has also introduced changes to its residential criteria concerning builder deposits.

Where the builder provides a deposit of up to 5% of the property’s value, the purchase price will now remain unchanged for LTV purposes.

For deposits over 5%, the society will reduce the purchase price accordingly.

Commenting on the changes Hinckley & Rugby  senior product & proposition manager Chris Holmes said: “Our latest updates to the Income Flex and residential products reflect our desire to support borrowers who may not fit the typical income profile.

“Whether it’s accepting tips as part of income or increasing the LTV for zero-hour contractors, we’re making sure our criteria are flexible enough to accommodate the modern workforce.

He added: “With the changes to builder deposits, we’re also simplifying processes for new-build buyers, ensuring greater clarity and ease of access to higher LTV options.