Santander UK is raising its loan to income (LTI) thresholds, allowing some mortgage customers to borrow thousands of pounds more.

The move follows the Treasury’s revised LTI rules announced in July, and will apply to both homebuyers and remortgagers. Under the new policy, customers earning less than £45,000 will be able to borrow up to 4.45 times their income across all loan-to-value (LTV) bands.

Those earning between £45,000 and £100,000 will be able to borrow five times their income at up to 90% LTV, and 4.45 times at 95% LTV. For incomes of £100,000 or more, the multiple rises to 5.5 times income for up to 90% LTV, with 4.45 times available at 95% LTV.

The bank is also extending the 5.5 times income multiple to remortgage customers at all LTV levels, provided there is no additional borrowing.

Santander said the changes could translate into significant extra borrowing capacity. In one example, a couple with a combined income of £125,000 and an £80,000 deposit could see the amount they can borrow rise from £556,500 to £687,500. A single applicant earning £75,000 with a £30,000 deposit could see an increase from £267,000 to £300,000. Even for a remortgager with a combined income of £75,000 and no new borrowing, the uplift could be from £391,000 to £408,000.

David Morris, head of homes at Santander UK, said: “The recent changes to the loan to income rules mark the latest in a series of affordability improvements in what is quickly becoming the ‘year of the buyer’.

“We’re pleased to reflect these changes in our policies which, when coupled with our recent changes to affordability and a record number of properties coming to the market, will hopefully help more would-be buyers access the money they need to buy the home of their dreams.

“We’ll continually look at where we can enhance and improve our lending policy to help buyers right across the board.”