The mutual has lowered the minimum income threshold for people wanting to borrow at more than 4.49 times income from £50,000 to £40,000.
Skipton Building Society said this was one of the lowest requirements on the market.
It follows the decision from the Prudential Regulation Authority (PRA) to ease rules around high-LTI lending. The mutual was among the main lenders campaigning for a change in policy.
Further, Skipton Building Society will offer an LTI of up to 5.5 times income for borrowing up to 90% loan to value (LTV), and five times income below 90% LTV for those with incomes of £40,000 or more.
The mutual said this change meant that a borrower with an income of £41,000 could now access a loan of up to £225,500, up from £184,090 previously.
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Skipton Building Society has also raised the maximum LTI on its 100% Track Record mortgage, for previous renters, from 4.75 to five times income.
This change would see someone with an income of £60,000 be able to borrow up to £300,000, compared to £285,000 previously.
Charlotte Harrison, CEO of home financing at Skipton Building Society, said: “We’ve campaigned for change to the LTI rules to better support first-time buyers, so it’s really positive to see the PRA respond, and we’re proud to be taking immediate action following that shift.
“The changes we’ve announced today are a practical step that will make a real difference, by helping even more people take that first step onto the property ladder while ensuring we continue to lend responsibly.
“The PRA has estimated LTI changes could support an additional 36,000 first-time buyers into homeownership each year. We look forward to working closely with regulators and industry partners to build on this progress.”
