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Barclays ups income multiple for mortgage calculations

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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.

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