Loughborough Building Society has increased the loan to value (LTV) on its 5.5x income multiple calculation from 85% to 95% LTV.

this rise applies to residential borrowers who meet the mutual’s affordability requirements.

This change to criteria is designed to improve borrowing potential, particularly for self-employed individuals who may benefit from using their last year’s accounts, as well as higher-income applicants seeking more flexibility in their mortgage options.

In addition, the Loughborough maintains its flexible approach to credit history, retaining its potential to disregard any defaults which have been resolved over two years and CCJs settled over three years. Historical defaults on telecoms, mail order, utilities, or bank accounts can also be disregarded if resolved at least three months prior to the mortgage application.

Ashley Pearson, head of intermediaries at Loughborough Building Society, said: “This enhancement reinforces The Loughborough’s commitment to adapting its lending criteria to better serve the needs of modern borrowers, ensuring more people can access the right mortgage solutions for their circumstances.

“We recognise the challenges many borrowers face when trying to secure the borrowing they need, particularly those who are self-employed or have seen recent income growth.

“By increasing our income multiple to 5.5x up to 95% LTV, we’re providing a more flexible and expansive solution that enables those looking to purchase or remortgage to maximise their borrowing potential in a responsible manner.”