"We know that homebuyers are facing an extremely challenging economic environment, and we are committed to helping buyers navigate this period."
Nottingham Building Society has increased its maximum loan to income (LTI) ratio.
Borrowers looking to take out a mortgage with The Nottingham can now borrow a maximum of 5.5x against their household income, up from 4.5x.
The new LTI increase is applicable to households with a gross annual income of over £75,000. This means households with a gross income of £75,000 can now borrow up to £412,500, a significant increase from the previous maximum of £337,500.
The announcement comes as the average asking price for a first time home reaches a new height of £224,963, according to Rightmove data, yet incomes are not rising in line.
Alison Pallett, sales director at Nottingham Building Society, said: “It’s imperative that we move with the ever-changing needs of our customers. We know that homebuyers are facing an extremely challenging economic environment, and we are committed to helping buyers navigate this period.
"We also recognise that rapid changes to the way we live and work mean that lenders with non-traditional circumstances can find it difficult to get the mortgage they want. We hope that alongside our affordability criteria, increasing our LTI ratio will help more homebuyers on their journey.”
