Hinckley & Rugby raises its loan-to-income multiplier

Michael Lloyd

April 23, 2019

Hinckley & Rugby Building Society has increased its loan-to-income (LTI) multiplier across its residential range for applications where the loan-to-value (LTV) is up to 80%.

In response to broker feedback, the LTI for mortgages up to 80% LTV has been increased from four times single or joint income to 4.49 times.

The change is applied to all Hinckley & Rugby’s residential mortgages, including fee-free, fixed rate, discount, offset, self-build and cashback products.

Carolyn Thornley-Yates, Hinckley & Rugby head of sales and marketing, said: “Brokers told us they love our manual underwriting, no credit scoring and access to the daily meetings of our Mortgage Referral Committee of decision makers, but that our four times LTI was an obstacle in some cases.

“The brokers have clients who need a little leeway on the LTI whilst comfortably passing our disposable income affordability test. For those people the 4.49 times multiplier brings a Hinckley & Rugby mortgage into play along with our niche approach to personally considering each application.

“It also enables other applicants – those coming to us direct and via introducers – to borrow a little more if it’s affordable given their circumstances.”

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