Newcastle Intermediaries has increased its loan to income (LTI) multiples to 5 times salary on mortgages up to 85% LTV.
The broker-only arm of the lender previously offered a max LTI of 4.49x on products at this LTV and says the increase is intended to boost customer affordability.
The changes apply to employed and self-employed borrowers where gross income is greater than £50,000. Where gross income falls below £50,000 or where LTV is higher than 85%, the maximum LTI remains at 4.49x.
Newcastle Building Society head of intermediary mortgages Franco Di Pietro says: “As a building society, we’re committed to supporting home ownership by regularly reviewing our criteria to meet the changing needs of customers.
“Recent house price inflation has meant borrowers are now requiring lenders to support them further by enhancing their affordability criteria whilst still lending responsibly. I’m confident these improvements to our loan to income multiples and our continued flexible approach to underwriting will provide borrowers with more options.”
In October, Newcastle Intermediaries introduced two new large loan products and cut rates across several of its mortgage ranges.
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