Loan to Value criteria on the up

November 20, 2021

Enable’s IFAs in Bishops Stortford noticed that recently Newcastle Intermediaries have increased their maximum LTI to 5x salary. This has updated its lending criteria to boost affordability for customers who are looking to borrow up to 85% LTV.

They say, “recent house price inflation has meant borrowers are now requiring lenders to support them further by enhancing their affordability criteria whilst still lending responsibly.” In this case, the lender has increased its loan to income (LTI) multiples from 4.49x to a maximum of 5x salaries on mortgages of up to 85% LTV.

The changes they have brought in 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.

Franco Di Pietro, Head of intermediary mortgages at Newcastle Building Society, said: “As a building society, we’re committed to supporting homeownership by regularly reviewing our criteria to meet the changing needs of customers.” This is what Enable’s IFAs also do by following the changes and encouraging borrowers to look out for regular reviews of mortgage products by working in partnership with a broker.

“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. “Say the Newcastle.

If you need help finding the right LTV mortgage to suit your borrowing needs Enables IFAs can help you keep ahead of the changes and reviews of mortgage products.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage

https://www.financialreporter.co.uk/mortgages/newcastle-intermediaries-increases

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