Barclays improves Loan To Income criteria

Following a review of its lending policy, the threshold at which Barclays' 5.00x income multiple cap applies has been reduced to aggregate lending above £200,000 (previously the higher 5.00x cap only applied for balances in excess of £300,000).

Related topics:  Mortgages
Rozi Jones
30th June 2015
Barclays branch

All other income multiple limits remain unchanged.

The maximum standard income multiple for aggregate lending below £200,000 is 4.49x income.

Where an LTV is greater than 85% and income is higher £50,000 the maximum LTI limit is 4.49x income, dropping to 4.00x where income is below £50,000.

Help to Buy and Family Springboard lending schemes remain at 4.40x income.
                
While the new policy will allow increased borrowing above £200,000, the lending will be subject to the usual affordability assessments and must align to the clients borrowing needs.

A Barclays spokesman said:

“Following a regular review of our lending criteria we have decided to broaden our policies. This change builds on our recent expansion of our affordability criteria and Interest Only offerings to help more customers - whether they are buying a home or remortgaging from another lender.”

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