Barclays have recently announced that they’ve made some alterations to their requirements for lending.
It is not rare for lenders to regularly give consideration to lending criteria and make alterations where they feel it necessary. These alterations can come as a result of such events as a change in interest rates, the economic outlook as well as many other triggers.
In the case of Barclays, they are changing their residential and buy-to-let affordability policies around annual bonuses, pension contributions and child benefit.
The main changes are outlined below:
- Barclays are removing the £75,000 minimum income threshold for using annual bonus when assessing affordability.
- All applicants must have a combined total bonus income of more than £10,000 for year.
- Barclays’ Premier and Wealth customers where the annual bonus is used in affordability will no longer capped in line with basic salary where the basic income is more than £75,000 per year.
- The annual bonus will not be included where the customer is debt consolidating or when remortgaging with outstanding unsecured credit and taking on additional borrowing.
- When assessing affordability, Barclays will automatically calculate a base level of pension contributions in their assessment.
- Barclays will no longer consider Child Benefits income where an applicant earns £50,000 or more.
- Barclays will longer take into account Child Benefit income where any children involved are aged 13 or older.
If you’re looking for a mortgage, a remortgage or you’d like to find out more information, then get in touch. You can call us on 03333 44 85 11 or complete the form below and we’ll get back to you as soon as we can.