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Barclays drops LTI threshold

Sarah Davidson

August 21, 2015

The latest changes are effective from today Friday 21 August 2015 and follow two similar announcements from the bank at the start of each quarter this year.

At the end of June the bank dropped the minimum loan amount which qualifies for the enhanced multiple of five times income from £300,000 to £200,001.

At the end of March the lender made a series of income multiple changes, including increasing the income multiple for loans greater than £300,000 to five times a borrower’s income.

And in January Barclays limited all mortgage applications to a maximum of 4.5 times income.

Previously, the maximum LTI available to a borrower was determined by their salary, although this was scrapped and a 4.5 times income cap placed on all loans, down from a maximum of 5.5 times income.

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.”

Lending will be subject to the usual affordability assessments and must match a customer’s borrowing needs. All other income multiple limits remain unchanged.


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