Halifax ups income multiple to 5.5 times salary

Jake Carter

October 19, 2021


From 21 October, Halifax will change some of the loan-to-income (LTI) limits applied to its affordability calculations.

Where income is above £75,000 and the loan-to-value (LTV) is below 75%, for loans up to £1m, the max LTI is being increased from 5.00x to 5.50x.

Aaron Strutt, product and communications director at Trinity Financial, said: “Many borrowers are not aware that lenders offer more generous income multiples, particularly to higher earners.

“They approach their bank or building society and assume they are getting the most generous loan based on their income and overall affordability.

“More lenders are providing over five times salary mortgages to help borrowers get sufficient mortgages to buy the properties they want.

“Without these products they may well struggle to get on the property ladder, especially if they have credit commitments or children.”

Rob Gill, managing director at Altura Mortgage Finance, added: “There has been a lot of focus on how increases in taxes, utility bills and the cost of living in general might be taken into account by lenders and impact affordability for mortgage borrowers.

“In truth however, what lenders are taking away with one hand they giving back with the other in the form of increased income multiples, with Halifax being the latest in a number of lenders to do so recently.”

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