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Cambridge Building Society raises loan to income limits

  • 14/02/2018
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Cambridge Building Society raises loan to income limits
The Cambridge Building Society has announced that it will accept residential lending applications from borrowers looking to borrow five times their income.


Previously, the maximum loan to income ratio offered was 4.5.

The latest criteria change is designed to support homebuyers with a minimum income of £60,000, who are purchasing a property up to 80% loan-to-value (LTV), with no unsecured debt except student and car loans.

Although valid across all purchase products, it will particularly support those wishing to move up the housing ladder.

The building society said so-called ‘second steppers’ are quickly developing distinct needs and require specific assistance.

Tracy Simpson, head of lending at Cambridge BS commented: “We recognise the challenges homebuyers looking to move up the housing ladder are facing and have been looking at ways to help them.

“Their needs are different to those of first-time buyers and their often higher income combined with previous experience of running a home and maintaining a mortgage means we can be more flexible with how much we can lend to them,” she added.

Simpson continued: “House price growth in our core lending area of the East of England remains strong, and family homes in particular command a premium. Our flexible underwriting approach alongside changes such as this one announced today gives intermediaries and their clients another reason to consider us.”

The latest UK House Price Index from the Office of National Statistics showed that the average property price in the East of England stands currently at £290,341 – with prices having seen an annual increase of 5.2%, outstripping growth seen in London and the South East.

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