Joint or single applicants now need an income of £30,000 per year – down from £40,000 previously – if they want a mortgage at more than 4.5 times their income.
This change comes after the Bank of England said it would allow lenders to exceed 15% of lending at or equal to 4.5 times income.
This applies to all of Leeds Building Society’s residential lending, including its recently launched Income Plus range, which means people applying for this product can borrow as much as £165,000 at 95% loan to value (LTV), compared to £134,700 previously.
This will be subject to affordability checks.
Leeds Building Society has also reduced its stress rate to boost borrowing.
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Matt Bartle, director of mortgages and savings at Leeds Building Society, said: “We welcomed the decision to consider allowing more high loan to income on a lender-by-lender basis and are very pleased to have gained the Bank of England’s permission.
“Lowering our minimum income requirements brings the dream of homeownership a step closer for more borrowers, including many earning below national average earnings.
“We understand the importance of being a prudent and responsible lender. We carry out detailed affordability checks to make sure borrowers can realistically afford repayments and not overextend themselves financially.”
