TSB have just sent a message out to all brokers to say that they have increased their maximum Loan to Value (LTV) from 90% to 95% for self-employed and day rate contractor applicants meaning that potential new TSB clients could put down as little as 5% deposit on a new purchase.
TSB have made it clear that accessing this high LTV is subject to credit scoring. They have a 3 score tier system, if you have a clean credit score the maximum LTV is 95%, if you have a slightly lower than perfect score then the maximum LTV is 85% and if you have had some credit issues in the past that have affected your score you may be restricted to 65% LTV.
Content manager at Oportfolio Louis Mason says: “A large number of our clients are self-employed or receive a day rate through a business rather than being PAYE and the number of people being paid this way is on the rise. The fact that TSB are now understanding this and changing their loan to value to meet the changing landscape of the job world is fantastic. We as a broker can already see that this will allow a lot more people to purchase and remortgage and will only benefit the housing market. We do recommend that you speak to one of our brokers first so that they can carefully look at what you are wanting to do and make sure that a 95% mortgage is attainable before you make any decisions.”
If you or anyone you know is a self employed person or someone who is on a day rate contract and you would like to discuss mortgages with an expert, please feel free to give us a call on 02088771169.