First-time Buyer
Mutual offers mortgage up to 5.5 times borrowers’ income
Guest Author:
Shekina TuaheneLoughborough Building Society has re-introduced its 5.5 times income mortgage product to help borrowers who are able to afford a loan but see their borrowing power reduced by income multiples.
Mortgage lenders use a calculation known as a Loan-to-Income (LTI) ratio. This refers to how much the borrower is borrowing relative to their annual income.
Loughborough BS has relaunched its 5.5 times LTI product.
The two-year fixed rate product is available up to 80% Loan to Value (LTV) so you’ll need a 20% deposit. It comes with a rate of 3.49% and there’s a £699 completion fee.
It’s available through brokers and direct. The maximum loan amount is £750,000.
The minimum income Loughborough will allow is £50,000 for sole applicants and £75,000 for joint applicants. Applicants will likely be in careers where they will see incremental increases in income in the future, the mutual said, but added there was no restriction on profession.
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Early repayment charges also apply over the fixed term of the mortgage.
Ashley Pearson, business development manager at Loughborough Building Society, said “It’s great we’ve been able to re-introduce this solution for those who need a little more buying power in today’s market.”