Barclays sets standard LTI cap
Prior to the introduction of the new cap maximum loan-to-income was capped at 5.5 times income.
A Barclays spokesperson said the move was aimed at simplifying its criteria.
They said: “With immediate effect, we are simplifying our LTI criteria capping the maximum LTI at 4.5 across all LTVs.
“This change is part of our on-going business planning and something we always keep under review.”
Jeremy Duncombe, director of mortgages at Legal & General, praised Barclay’s for its recent commitment to the intermediary market but said the move was disappointing.
He said: “Barclays has been very supportive of both the broker market and the mortgage market in general in recent months and we have seen them launch some excellent products and criteria.
“As such it is disappointing that they have had to do this. Hopefully this will not set a precedence for other lenders moving forward.”