We’re changing how we lend – new policy updates

We’ve introduced new lending policy changes to loan to income (LTI) and maximum loan sizes to help people borrow more.

Here are the headlines at a glance:

Extended our LTI policy to borrowers with 10% deposit. Eligible customers may be able to borrow up to 27% more depending on their income*.

New multiples are:

• 4.5x income where allowable income is £50,000 or less per year or where the LTV is over 90%.
• 5x income where allowable income is more than £50,000 but no more than £75,000 per year up to 90% LTV.
• 5.75x income where allowable income is more than £75,000 per year up to 90% LTV.

Increased maximum loan sizes for borrowers with 5% or 10% deposit. Eligible customers will be able to borrow up to £200,000 and £250,000 more respectively.

The new maximum loan sizes are:

• 90% LTV: £750,000.
• 95% LTV: £600,000.

We’ve also reduced our ERC charges by 0.5% across the board and reduced SVR.

Get in touch with your BDM to find out how these changes can help your clients.

*Based on an increase in the maximum LTI for borrowers with a 10% deposit from 4.5x to 5.75x. Terms and conditions apply. Criteria subject to change, please check before submitting.