Lenders are beginning to change their lending criteria for EU and EEA applicants who do not have indefinite leave to remain in the UK in response to the EU settlement scheme.
Nationwide’s changes take place on Monday 26 April. It says that any decision in principle carried out before 25 April for relevant clients must be submitted to full application by this date or the Dip will be terminated.
The building society adds that after this date the new Dip will need to be completed following the new criteria.
From 26 April, Non-UK or Republic of Ireland nationals without indefinite leave to remain status will be limited to products featuring a maximum of 75 per cent LTV unless a second mortgage applicant falls under this category and their income is not used on the mortgage application.
Applicants without indefinite leave to remain and who are on a points-based visa or have pre-settled status must have at least two years and six months remaining; and applicants must have evidence of their residency status with a stamp in a valid passport or biometric residency card.
Virgin Money is changing its criteria sooner, warning that Dips submitted after 8pm on Monday 5 April will fall under its new policy. It adds that customers already in the pipeline will not be affected.
The lender asks that EU, EEA and Swiss citizens excluding the RoI prove their permanent right to reside in the UK or their settled/pre-settled status by providing their Home Office-supplied share code.
Original Article from Mortgage Strategy 31/03/2021