The maximum LTI for lending under 80% LTV remains at 5.5.
A spokesman for Barclays said:
“Our LTI criteria on residential applications will be capped at a maximum of 4.5 with LTV thresholds greater than 80 per cent.
“This change is part of our on-going business planning and something we always keep under review.”
From October, Bank of England legislation ruled that no more than 15% of mortgages issued by a lender should exceed a loan-to-income ratio of 4.5.
The Bank also required lenders to stress-test borrowers’ affordability against a 3% increase in base rate.
