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Barclays raises loan to income multiples across all mortgages

  • 22/03/2018
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Barclays raises loan to income multiples across all mortgages
Barclays is raising its standard loan to income (LTI) multiple up to 4.49 across all mortgages from today.


The criteria change is the latest in a series of moves by the lender aimed at broadening its borrower reach, particularly among first-time buyers.

Earlier this month, Barclays raised its loan to value (LTV) for new build and shared ownership and launched new deals for buyers with small deposits of 5% and 10%.

The lender previously allowed 4.49 LTI for borrowers who earned more than £50,000 – anyone below this income could get up an LTI of up to 4.

Borrowers with incomes of £55,000 can still get 5 x income if they are at 85% loan to value (LTV) or below, at 85-90% they will be capped at 4.49.

Craig Calder, Barclays director of intermediaries told Mortgage Solutions the lender is actively widening its proposition into areas it’s has not typically been associated with in the past.

He said: “We grew by a huge amount last year; our ambition is to do more than that this year.

“This is about us developing into new markets. For us, it’s really important to take the customer need and then push that through in terms of the proposition, which is why some of the policy changes are important.

“We want more of the business; we’re changing the proposition.”

He added: “The purchase market in general for us is a really exciting opportunity, it’s about identifying those markets we think can help both brokers and borrowers to do more business.”

UK Finance data shows the average LTI has steadily been increasing both for home movers and first-time buyers in recent months.

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