In June, the threshold was reduced to aggregate lending above £200,000 (previously the higher 5.00x cap only applied for balances in excess of £300,000).
Additionally, Barclays now takes the annual bonus income into mortgage affordability calculations for clients who meet the minimum basic income criteria. Sole applicants must have a gross income of £75k+ (excluding the annual bonus).
Craig Calder, Director of Mortgage Products at Barclays, said:
“We’re making these changes because we want to extend the opportunity for more people to become homeowners. We understand that first time buyers in particular have a unique set of challenges and know that this will widen opportunities for them to get onto the property ladder – as we continue to lend in a responsible way.”
