Skipton lowers income threshold to qualify for its 5 and 5.5 times salary mortgages
Skipton Building Society is the latest mortgage lender to announce that it is lowering the minimum income threshold for borrowers seeking high loan-to-income mortgages to £40,000 from £50,000.
The lender will offer a loan-to-income of up to 5.5 times for borrowers with a 10% deposit, across its product range, subject to affordability, from next Monday (28 July).
According to Skipton its new criteria changes mean that customers with a total application income of £41,000 and a 10% deposit will be able to borrow up to £225,500 — that’s over £41,000 more, a 22% increase on what they could have previously borrowed. Applicants will need a good credit history to qualify.
Under its old lending rules, borrowers on a £41,000 income and a 10% deposit could have borrowed up to £184,090.
Skipton offering 5 times salary on Track Record no-deposit mortgage
Skipton will lift the maximum income multiple on its 100% Track Record no-deposit mortgage from 4.75 to 5 times income.
This will allow borrowers with a household income of £60,000 to apply for this loan and borrow up to £300,000 – a 5% increase, or £15,000.
Skipton Building Society's chief executive of home financing, Charlotte Harrison, says: “We’ve campaigned for change to the LTI rules to better support first-time buyers, so it’s really positive to see the PRA respond, and we’re proud to be taking immediate action following that shift.
“The PRA has estimated that LTI changes could support an additional 36,000 FTBs into homeownership each year. We look forward to working closely with regulators and industry partners to build on this progress.”
Nationwide changes its Helping Hand mortgage
Nationwide announced last week that it is making it easier for more people to get on the property ladder by relaxing the income criteria for its Helping Hand mortgage, which offers lending of up to six times the salary to first-time buyers. The move will enable it to write around 10,000 more first-time buyer loans over the coming year, while Lloyds Banking Group announced that it would set aside an extra £4 billion for high loan-to-income lending.
Do many lenders offer income stretch mortgages?
The mortgage market is opening up and there is a lot of choice for borrowers planning to get on the property ladder. Trinity's brokers have access to a range of lenders offering enhanced income multiples for all types of borrowers.
Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation
The information contained within was correct at the time of publication but is subject to change.
Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage
Get started today
Speak to one of our mortgage experts. Book an appointment to come and see us or request one of our experts to call you.
