You are here: Home - Mortgages - First Time Buyer - News -

Barclays ups income multiple for mortgage calculations

0
Written by: Lana Clements
22/03/2018
Barclays is raising its standard loan to income (LTI) multiple up to 4.49 across mortgages with an LTV between 85% and 90% from today.

The criteria change is the latest in a series of moves by the lender aimed at broadening its borrower reach, particularly among first-time buyers.

Earlier this month, Barclays raised its loan to value (LTV) for new build and shared ownership and launched new deals for buyers with small deposits of 5% and 10%.

The lender previously allowed 4.49 LTI for borrowers who earned more than £50,000 – anyone below this income could get an LTI of up to 4.

Here’s what’s changing (click to enlarge):

BarclaysLTItable

Craig Calder, Barclays director of intermediaries told our sister title Mortgage Solutions the lender is actively widening its proposition into areas it hasn’t typically been associated with in the past.

He said: “We grew by a huge amount last year; our ambition is to do more than that this year.

“This is about us developing into new markets. For us, it’s really important to take the customer need and then push that through in terms of the proposition, which is why some of the policy changes are important.

“We want more of the business; we’re changing the proposition.”

He added: “The purchase market in general for us is a really exciting opportunity, it’s about identifying those markets we think can help both brokers and borrowers to do more business.”

UK Finance data shows the average LTI has steadily been increasing both for home movers and first-time buyers in recent months.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
working mums
People expect to work into their seventies…reluctantly

The number of employees that expect to work past the age of 70 has nearly doubled in seven years and...

Close