Nationwide will make changes to its maximum income multiple for borrowers applying for a mortgage above 85% loan-to-value (LTV), from tomorrow.
The building society has reduced its maximum income multiple for sole applicants in this LTV bracket to 4.5 times gross disposable income.
All other applications will be assessed under the society’s current income policy of 4.75 times income.
The lender’s buy-to-let arm, The Mortgage Works, recently made changes to its rental coverage calculation raising it from 125% to 145% while halting all lending at 80% LTV and above, from 11 May.
On Tuesday, Nationwide released its preliminary results which showed a 20% year-on-year increase in gross mortgage lending to £32.6bn. The results confirm Nationwide’s status as the second biggest UK mortgage lender behind Lloyds Banking Group.
