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Improved accuracy and increased lending potential - we've enhanced our affordability calculator

We’ve made improvements to our mortgage affordability calculator. It means you’ll see more accurate outcomes when you submit a Decision in Principle (DIP) and a Full Mortgage Application (FMA) through Mortgage Hub. You’ll see an increase in your clients’ borrowing potential if they’re purchasing an energy efficient home (built since 2020). Personal tax bands will also now be considered for your BTL clients. This will ensure you can keep providing the most appropriate advice to your clients.

Key changes made to Residential and Buy to Let affordability calculations include:

• Increased borrowing potential on homes built since 2020 with EPC ratings of A-B, allowing residential homebuyers to borrow more on a greener new build home when compared to a less energy efficient older property.
For example, a customer seeking a residential mortgage up to 90% loan to value against a new build standard property valued at £225,000 could borrow £210k versus £199k on a non-new build property.

• Inclusion of personal tax bands for Buy to Let calculations, ensuring all affordability calculations are as accurate as possible by having the appropriate personal tax applied to rental income.

“We are most excited about increasing the borrowing we offer for the most energy efficient properties. These customers will benefit from lower fuel bills as well as doing their bit to help the environment,” said Martese Carton, Leeds Building Society’s Director of Mortgage Distribution.

“It’s important to recognise how home energy efficiency can positively impact a household’s regular outgoings, such as mortgage repayments. As a lender, we are keen to lead the way in doing this.

“Improving our affordability calculations to better match what brokers see when processing applications through Mortgage Hub allows us to ensure we are doing everything we can to lend responsibly.

“The BTL enhancements enable your landlord clients to receive more realistic affordability assessments, as the varying personal tax bands lead to different income calculation results.

“This is just the next step in improving the way we help our members manage their finances and continue our support for the UK’s transition to net zero.”

Emma Harvey-Smith, Programme Director at the Green Finance Institute said: “It is wonderful to see Leeds Building Society offering customers improved affordability on greener properties.

“To successfully decarbonise the UK’s housing stock we need to encourage more and more people to live in energy efficient homes. Incentives on mortgage affordability for greener homes - combined with increasing consumer awareness - will be vital to boost demand.”


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