Skipton Building Society has increased the maximum loan-to-income multiple available through its LTI Booster range as it looks to give borrowers greater scope to meet affordability requirements.
From 5 October, eligible applicants borrowing up to 90% loan-to-value can access mortgages at up to six times income, compared with a previous maximum of 5.5 times.
For eligible borrowers requiring a mortgage at 95% LTV, the maximum multiple has risen from five times to 5.5 times income.
The building society said the changes are aimed at customers who can afford the repayments associated with a larger mortgage but have previously been constrained by its maximum income multiples.
INCOME THRESHOLDS UNCHANGED
Skipton has retained its existing minimum income requirements, with sole applicants required to earn at least £40,000 and joint applicants a minimum of £60,000.
The higher LTI limits are available across residential mortgages as well as Shared Ownership, First Homes, Help to Buy and LIFT applications.
Jen Lloyd, head of mortgage products at Skipton Building Society, said: “For many aspiring homeowners, affordability isn’t always the challenge. The barrier can be borrowing enough to buy a suitable home in the area where they want to live.
“That’s why we’re increasing our loan-to-income limits for customers whose circumstances support it. It’s about creating a fairer path to homeownership by recognising that some borrowers can comfortably afford their mortgage repayments but are restricted by borrowing caps that don’t always reflect their individual situation.
“By providing greater flexibility within our lending criteria, we’re helping more customers access the borrowing they need, widening access to homeownership for people who may otherwise struggle to get on the property ladder or make their next move.
“All lending decisions remain subject to our affordability assessment, regardless of the income multiple. We continue to lend responsibly, ensuring customers can comfortably afford their mortgage repayments.
“While not every borrower will need or want a higher income multiple, this change gives us greater flexibility to support customers whose circumstances justify it, while maintaining the prudent lending standards that have always underpinned our approach. It’s another step towards making homeownership more accessible, without compromising on responsible lending.”
