The lender issued the announcement in a statement distributed to brokers and said it had made the decision “in response to changes in the market”.
The move follows in the footsteps of other lenders such as Barclays and Santander who have also introduced or extended income multiple caps on some or all of their mortgage products.
In a recent poll carried out by Mortgage Solutions, just under half of respondents said they anticipated lenders introducing blanket LTI caps across the board this year.
In its 2014 financial results issued on Wednesday, TSB recorded a profit of £133.7m with over half of the sum generated from a mortgage loan portfolio assigned to the group by Lloyds Banking Group worth £71.7m.
Gross mortgage lending grew 1.7% in the fourth quarter of 2014 to £404.5m.
However, it added that given the absence of a mortgage intermediary channel until 2015, mortgage lending balances to TSB Franchise customers dropped 6% to £18.8bn over 2014.
TSB said it has received over £300m worth of mortgage applications to date through its mortgage broker arm.
Chief executive Paul Pester said the group had made positive headway in 2014 as a newly listed business but explained the launch of its broker channel would boost mortgage growth.
“We delivered financial performance that, on balance, exceeded our expectations and we made a strong start in the delivery of TSB’s growth strategy. Meanwhile, as expected, our Franchise customer lending fell to £18.8 billion in 2014 as TSB mortgages had not been available through intermediaries who represent c.60% of the UK mortgage market.”
Pester said he expected TSB’s new intermediary business would provide around £4bn of mortgages in 2017.
“I believe that the development of TSB’s intermediary mortgage market capability, successfully launched in January 2015, is an important step in enabling more people right across Britain to borrow well with TSB.”
