Leeds raises maximum mortgage income multiple from 5.5 to 6 times salary
Tags: First-time buyers, Remortgages, Residential mortgages
Leeds Building Society has boosted its Income Plus mortgage range — increasing the maximum loan-to-income ratio from 5.5x to 6x and opening it up to home movers and remortgagers, not just first-time buyers.
The lender says that amid life changes and rising costs, the number of potential mortgage borrowers who need more flexibility is increasing. These changes to mortgage criteria provide more ways to help borrowers at each stage of their homebuying and mortgage journeys.
The key Leeds Income Plus mortgage include:
- Up to 6 x loan to income available for first-time buyers (FTB), home movers and remortgages with a minimum household income of £75,000
- Up to 5.5 x loan to income available for home movers and remortgagers with a minimum household income of £50,000 and FTBs with a minimum household income of £30,000
- Minimum 5% deposit required for FTBs
- Minimum 10% deposit required for home movers and remortgagers (loan-to-value limits apply to remortgage, dependent on capital raising purpose)
- Available for new build (subject to limits) and self-employed applicants
- Products are available on five-year fixed-rate deals
Aaron Strutt, product director at Trinity Financial, says: "Most of the lenders offer their larger income stretch mortgages to first-time buyers and higher earners, but they don’t normally issue them to remortgage customers, so it is good to see the more generous mortgages being available for remortgages as well.
"You would have to be quite brave to take six times your salary at the moment, unless you really like the property you want to buy, especially if you can only just meet the affordability requirements. More lenders issuing 5.5- and 6-times-salary mortgages are finding they are so popular that they need to issue more smaller-income-multiple mortgages to balance the books. This shows the growing need for income stretching and how it is helping all types of borrowers get on the property ladder.
"The Leeds Income Plus five-year fixed mortgages start from just over 5% with a 15% deposit, which isn’t too bad, especially given the scale of mortgage price hikes we have seen. With a household income of £75,000, clients may be able to borrow up to 6x their income. Or with a household income of at least £50,000 (£30,000 for first time buyers), they may be able to borrow up to 5.5x their income. This gives them extra flexibility to buy, move or remortgage. Most of the big lenders offer 5.5 times salary mortgages now and some provide six times salary like HSBC, Barclays and Bank of Ireland."
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The information contained within was correct at the time of publication but is subject to change.
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