Barclays has extended its recently introduced loan-to-income (LTI) cap to apply to all its mortgage products.
Last week, Barclays informed its brokers that an LTI cap of 4.5 times an applicant’s income would apply to cases above 80% loan-to-value. The lender has now extended this to cover all of its mortgages which it said will simplify its criteria for brokers.
Any cases created on or before 21 January but have not been submitted to the lender will need to be recalculated using the new cap or they will be declined.
If an application has been submitted and has received an accept decision or an accept with docs decision the case will be allowed to proceed without a recalculation.
Any case which has been submitted but has received a refer decision will be subject to the new LTI cap and the broker will be notified if the loan size needs to be reduced.
