Mortgage News
Accord cuts LTI for higher incomes to manage service
Accord Mortgages has cut its maximum loan to income (LTI) multiple down to 4.49 for incomes of £60,000 and above to manage service levels.
The cap was previously five times income and the change puts higher earners on the same level as those earning below £60,000.
The new cap takes effect from Wednesday 21 October and will only impact new business and new applications for additional loans.
Accord highlighted that pipeline cases will not be affected, even if there is a material change to the application.
Jeremy Duncombe, director of intermediary distribution at Accord Mortgages (pictured) said: “Our priority is ensuring we can continue to offer a high level of support to brokers within the current environment.
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“By making this adjustment to LTIs, we can manage volume and increase capacity to support brokers with a wider range of products.
“While a difficult decision to make, by honouring all our pipeline cases we hope the impact to brokers and customers will be limited. We will continue to review the situation and reinstate the higher cap as soon as possible.”
Yorkshire Building Society is also standardising its lending policy to an LTI cap of 4.49 times for all incomes.