It will now lend up to 4.75 times LTI (up from 4.5 times) for borrowers wanting to move home or remortgage at up to 85% loan to value (LTV).
The change has been prompted by the Bank of England giving lenders increased flexibility to report LTI ratios quarterly on a rolling 12-month basis, rather than by individual quarter.
Leeds Building Society head of intermediary distribution Martese Carton said the BoE’s changes would give lenders more flexibility in managing their business flows over a longer period.
“It’s good news for borrowers and brokers and we expect the changes will enable us to help more people have the home they want,” he said.
“As a responsible lender, we will continue to assess all mortgage applications on affordability.
“This prudent approach is supported by our decision to lend at higher LTI, with an LTV limit of 85%, to borrowers who already have a mortgage and can demonstrate previous payment history,” she added.
