First-time Buyer
Barclays makes it easier to get a bigger mortgage
Barclays has relaxed its criteria for mortgages that are worth five times a borrower’s income.
The lender will now provide the bigger loans to applicants who have an income of at least £30,000.
Previously only borrowers with at least £45,000 could qualify for the fives times income mortgages.
Customers must also have at least a 20% deposit or equity to be accepted for the loans.
Borrowers between 80% and 85% loan to value (LTV) need an income of at least £45,000 to access the five times income multiple.
Mortgages above 85% LTV will only be allowed a maximum multiple of four times income.
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Premier and Wealth customers can get a maximum multiple of 5.5 income if at least one applicant earns £75,000, or £100,000 for joint applications.
Income multiples increasing
The Barclays changes come after data from the Bank of England showed the number of loans above four times annual income now makes up almost half of all new lending.
Last month Darlington Building Society revealed it would lend up to six times an applicant’s income on its range of professional mortgages.