Clydesdale Bank has made changes to its affordability calculations which means it can now lend more to the majority of customers.
It has relaxed its rules and removed restrictions, giving more customers access to higher multiples.
Higher earners and customers remortgaging with no additional borrowing have increased access to its maximum 5.5x multiple.
The new multiples are as follows:
Purchase or remortgage with additional borrowing:
- Income under £50,000 – 4.49x
- Income £50,000 to £74,999 – 5x
- Income of £75,000 or more – 5.5x
Maximum 4.49x LTI over 85% LTV or if any applicant is self-employed (not including contractors meeting our contractor policy), at all income levels.
To determine the £50k/£75k income levels, when applying LTI multiples the bank will include basic pay, 60% of allowable variable income, and 100% of pension, rental and allowable benefit income.
Remortgage with no additional borrowing:
- Up to 85% LTV – 5.5x
- Over 85% LTV – 4.49x
For a remortgage with no additional borrowing, income level and self-employment don’t affect LTI limits.
The bank still offers up to 5.5x for eligible Newly Qualified Professional applicants taking an NQP product.
