Borrowers with sole or joint income of £45,000 and above qualify for a five times income multiple, while those with income of less than £45,000 can borrow 4.49 times income.
For loan to values over 85%, borrowers with income of £50,000 or over will qualify for 4.49 times income, while those with lower incomes can borrow four times. If the debt to income ratio is greater than 20%, a four times multiple applies.
This replaces the previous £175,000 minimum loan requirement.
There are exceptions to the rules – for example for the Family Springboard, Premier and Wealth products income multiples of 5.5 times are allowed. Help to buy borrowers can borrow 4.49 times.
All new applications are now subject to these rules. Fees are included in the calculations.
The bank has also fully automated its decline and refer rules for early delinquency. In a memo to brokers it said it would decline applications where an applicant had two or more consecutive payments in arrears in the last six months. Such applications would not be reconsidered.
Applications with one payment in arrears in the last six months will be referred.