West Brom Building Society has introduced a range of changes to its mortgage lending criteria aimed at making home buying more accessible, especially for those with smaller deposits.
From today, eligible customers with a 10% deposit may be able to borrow up to 27% more, thanks to higher income multiples being made available on lending up to 90% LTV.
Borrowers with a total application income over £50,000 will now be able to borrow up to 5x their income, while those earning over £75,000 will see their income multiple increase to 5.75x, both up from 4.5x previously.
In addition to the increase in income multiples, the West Brom is also increasing the amount it will lend at 90% LTV from £500,000 to £750,000, with lending at 95% LTV increased from £400,000 to £600,000.
Gareth Madeley, head of product at West Brom Building Society, said: “We’re always looking at ways to make home ownership more accessible for our customers. By extending higher income multiples on lending of up to 90% LTV, we’re giving customers the opportunity to access more funds, and for some, that could mean the difference between being able to own a home or not.
“With affordability remaining a stretch for many this move will enable more first-time buyers and next time buyers to own the home they want, and we’re really supportive of that, providing it’s done in a way that remains affordable and responsible.”
