Here’s some great news about our LTIs: we’re removing our interest-only cap, so the repayment method doesn’t feature in our LTIs anymore. That’s good for your customers, because it means more will get the loan amounts they need – and it’s good for you, because it could mean you’re able to help more customers.
This comes hot on the heels of changes we made in 2023, all aimed at improving your customers’ affordability outcomes.
Policy playback
Here’s our new loan-to-income policy.
Purchase or remortgage with additional borrowing:
- Income under £50,000 – 4.49x
- Income £50,000 to £74,999 – 5x
- Income of £75,000 or more – 5.5x
Max 4.49x LTI, whatever the income, if any of the following apply:
- Over 85% LTV
- Any applicant is self-employed (not including contractors meeting our contractor policy)
- Shared ownership
Remortgage with no additional borrowing:
- Up to 85% LTV – 5.5x
- Over 85% LTV – 4.49x
Just so you know, when a customer is remortgaging with no additional borrowing, their income and self-employment don’t affect LTI limits.
For more detailed info, head to our full lending policy.
Any questions?
If you’ve got questions, your Business Development Manager is the best person to answer them.