Foundation Home Loans has increased the amount higher-earning residential borrowers can access under changes to its loan-to-income criteria.
The intermediary-only specialist lender said sole applicants earning at least £50,000 could now borrow up to 5.99 times their income, compared with the standard maximum of 4.49 times.
Joint applicants with a combined income of £70,000 or more will also be eligible for loans of up to 5.99 times income.
The revised criteria, announced on 19 August, are available for applications involving as many as four borrowers. They also apply to joint borrower sole proprietor cases, with the income of non-occupying borrowers taken into account.
Foundation said the changes were intended to help borrowers whose income and affordability were strong but whose borrowing capacity was restricted by standard income multiples.
The lender expects the criteria to support customers including high-net-worth borrowers who do not meet conventional definitions of professional applicants, families using joint borrower sole proprietor arrangements and joint applicants with higher combined incomes.
Foundation will continue to accept key worker applications at up to 5.49 times income and professional applications at up to 5.99 times income. Pound-for-pound remortgage applications will remain free of an LTI cap.
The changes form part of a wider revision of the lender’s residential mortgage range, including simplified credit tiers, revised adverse-credit criteria and pricing changes across its new lending and product transfer ranges.
Grant Hendry (pictured), director of sales at Foundation, said: “The housing market continues to present affordability challenges for many borrowers, particularly those with strong incomes who find their borrowing potential restricted by standard loan-to-income limits rather than their ability to repay the loan.
“These changes allow us to take a more flexible approach for higher-earning customers across a range of borrowing scenarios, including joint applications and Joint Borrower Sole Proprietor cases.
“They enhance our ability to support creditworthy borrowers whose circumstances may not fit a standard lending model.
“Alongside the wider enhancements we’ve made to our residential proposition, these changes give brokers more options when placing cases and provide more opportunities to say yes to customers with strong affordability.
“Ultimately, it’s another example of our commitment to making mortgages happen.”
