Skipton caps mortgage lending at 4.75 times salary
Skipton Building Society is the latest lender to announce it will cap its maximum loan-to-income (LTI) ratio.
From May 11, the maximum loan-to-income ratio will be reduced from 5 times salary to 4.75 times salary.
In a note to brokers, head of intermediary relationships Paul Darwin, said: “We have managed to hold our current LTI cap for as long as possible, being one of just a few lenders to have not changed our income multiple.
“However, we must comply with the Bank of England’s rule that only 15% of our total mortgage lending can be above 4.5 times income.”
A host of banks and building societies have lowered their maximum income multiples including Lloyds and Royal Bank of Scotland, putting additional pressure on lenders like Skipton.
It is still possible for some borrowers to secure five-times salary mortgages, although they are harder to qualify for.
After initially tightening its income multiples and capping lending, Barclays recently decided to provide five-times salary once again for mortgages over £300,000.
If you would like help to borrow five times salary for a mortgage, call Trinity on 020 7016 0790.
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