Platform has increased the loan to income ratio for qualifying mortgage applicants.
The intermediary mortgage brand of the Co-operative Bank says brokers can now source mortgages for clients to borrow up to 4.85 times income, where LTV is less than or equal to 80% including any fees added to the loan, subject to minimum disposable income.
A loan to income multiple of 4.49 will apply to any applications that don’t meet the specified criteria.
Platform said that house prices have risen disproportionately to average earnings, leaving many first time buyers struggling to afford their own home, but that the lender’s move means brokers are now able to source mortgages for their clients which allow them to borrow more relative to their income, provided they meet other affordability criteria.
Paul Norcott, head of Platform, said: “We’re pleased to be able to offer this increased loan to income ratio to our brokers, helping them to find the best deal for their clients. We have included eligibility criteria for this more favourable loan to income ratio to ensure that we’re still maintaining a responsible stance on lending options.”