Barclays loosens LTI criteria
The threshold at which the 5.00x income multiple cap applies has been reduced to aggregate lending above £200,000 – previously the higher 5.00x cap only applied for balances in excess of £300,000.
All other income multiple limits remain unchanged. While the new policy will allow increased borrowing above £200,000 the lending will be subject to the usual affordability assessments and must align to the clients borrowing needs.
A Barclays spokesman said: “Following a regular review of our lending criteria we have decided to broaden our policies. This change builds on our recent expansion of our affordability criteria and interest-only offerings to help more customers – whether they are buying a home or remortgaging from another lender.”