Aligning Criteria with Reality: A Broker’s Guide to Our Enhanced Residential Criteria

In today’s specialist mortgage market, the definition of a “standard” borrower is rapidly changing. 

Recent homeowner research we conducted reveals that the financial lives of many aspiring and current homeowners are more complex than traditional lending models might suggest. 

At LendInvest, we are evolving our residential proposition to meet these real-world challenges head-on.

Based on feedback from our brokers, combined with our commitment to aspiring homeowners who don’t fit the traditional “high street” mould, we are making the following changes to our propositions to better support today’s modern borrowers.

Removing Barriers: Communications and Utility Payments

Our research shows that nearly one in five (18%) adults have missed a payment on a utility or communications account in the last 12 months. For those with complex incomes, this figure rises to 21%.

Traditional credit scoring often penalises these minor blips, but they shouldn’t stand in the way of homeownership.

• The Change: Communications and utility payments are no longer counted as adverse for tier eligibility.
• The Impact: Borrowers who have missed a phone, or heating/electricity/water bill will not be pushed into a higher-interest tier, allowing for more consistent and fair outcomes.

Supporting Complex Incomes and Zero Hours Contracts

The “one-size-fits-all” approach to income often leaves deserving borrowers behind. Over a third (35%) of people have felt discouraged from applying for a mortgage at a high street bank due to their employment status or income streams. This sentiment is even stronger among 18-34-year-olds, where 40% feel discouraged.

• The Change: We now accept 100% of basic pay from zero-hour contracts, provided there is a 12-month history, and continue to accept up to 50% of that income if the history is less than 12 months. (subject to underwriting approval)
• The Impact: We are providing a clear pathway for the growing number of employed applicants who don’t fit the standard 9-to-5 mould, improving overall affordability and acceptance.

Opening Doors

The new build sector is a vital engine for the housing market, and we are committed to providing the flexibility that today’s brokers and clients need. To better support this demand, we’ve overhauled our LTV criteria to offer some of the most competitive caps in the space.

Previously, our lending was capped at 85% for houses and 75% for flats. Recognising the evolving needs of the market, we have boosted these to 90% for houses and 85% for flats (for new builds only). This shift represents our confidence in the new build market and our dedication to helping more clients secure their future.

Reducing the Stress of Rejection

We get it. Applying for a mortgage is an emotional journey. Our research found that 35% of respondents cite the fear of rejection as their biggest barrier to applying. For those who have been turned down, the impact is significant: 41% felt stressed, and 21% saw a negative impact on their finances.

By simplifying our tiers and being transparent about our criteria, we aim to make specialist lending:

• Reliable: A steady, principled approach to decision-making.
• Informed: Helping you understand the “why” behind tier placement.
• Clear: Providing the professional guidance and certain criteria needed to help reduce the stress of the unknown.

If you have clients who don’t fit the traditional lending criteria of the high street banks, we may be able to support. Contact your local BDM today or get started in the Mortgages Portal

LendInvest plc is a public limited company registered in England and Wales (No. 8146929). Registered

Office: 4-8 Maple Street, London, W1T 5HD.

LendInvest Mortgages and LI Mortgages are registered trading names of LendInvest Loans Limited. LendInvest Loans Limited is authorised and regulated by the Financial Conduct Authority (FRN:737073). LendInvest Loans Limited is a company registered in England & Wales (Company No. 09971600) and is a wholly owned subsidiary of LendInvest plc.

Regulated lending is provided via LendInvest Loans Limited (Company No. 09971600). Unregulated lending is provided by LendInvest BTL Limited (Company No. 10845703) and LendInvest Bridge Limited (Company No. 11651573), which are wholly owned subsidiaries of LendInvest plc.

Borrowing through LendInvest and its affiliates involves entering into a mortgage contract secured against property. Your property may be repossessed if you do not repay your mortgage in full.