The Leeds Building Society is adjusting its loan to income (LTI) criteria for some of its borrowers.
Lenders have been given more flexibility by the Bank of England to cope with fluctuations in business volumes.
In future, they will be permitted to monitor and report their LTI ratios quarterly on a rolling 12-month basis, rather than by individual quarter.
The Leeds has responded to this change by confirming it will now lend up to 4.75 times LTI for borrowers wanting to move home or remortgage, up to 85% loan to value (LTV).
“The changes agreed by the regulator will give lenders more flexibility in managing their business flows over a longer period,” said Martese Carton, Leeds Building Society’s head of intermediary distribution.
“It’s good news for borrowers and brokers and we expect the changes will enable us to help more people have the home they want.
“As a responsible lender, we will continue to assess all mortgage applications on affordability.
“This prudent approach is supported by our decision to lend at higher LTI, with an LTV limit of 85%, to borrowers who already have a mortgage and can demonstrate previous payment history.”
