Mortgage News
Halifax increases LTI to 5.5x income and boosts affordability for nurses
Halifax has increased the loan to income (LTI) across its income bands, and increased amounts of additional duty hours and nursing bank income assessed, to improve affordability for applicants.
The changes come into force from today and those earning less than £40,000 the maximum LTI is now 4.49x income. This limit was previously applied to those whose income was less than £30,000.
For borrowers earning over £75,000 with loans up to £1m at less than 75 per cent loan to value (LTV) they can access 5.5x income. This is an increase from 5x income.
At the same income bracket, loans between £75,000 and £1m from 75 to 85 per cent LTV the LTI has gone from 4x to 4.49x income.
Also for those earning above £75,000, and for loans between £500,000 and £750,000 with an LTV between 85 and 95 per cent, the maximum LTI is increasing from 4x to 4.49x income.
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The lender has also boosted additional duty hours and nursing bank income allowed from 60 per cent to 100 per cent.
The lender added that a maximum LTI of 4.49x income applies to affordable housing schemes where there is self-employed income.