Clydesdale Bank has capped its maximum loan to income (LTI) to 4.49x for self-employed applicants.
The changes will see self-employed borrowers join those needing loans above 85 per cent loan to value (LTV) and borrowers with incomes lower than £50,000. Applicants outside of this criteria will still be allowed to borrow up to five times their income.
All self-employed income, 100 per cent of the pension and allowable benefit income will be included in the LTI calculation.
The change will not affect day rate contractors who meet the bank’s contractor criteria.
Applicants already in the pipeline will not be affected but cases submitted after 8pm on 3 March will be assessed using the new policy.
Skipton BS
Skipton Building Society has capped LTI for applicants with borrowing needs above 85 per cent LTV to 4.49.
This will apply from tomorrow and pipeline or decision in principle cases will not be affected by the changes.
All other LTI criteria remains the same with Help to Buy and shared ownership mortgages at 4.5 and applications below 85 per cent LTV at 4.75. For applicants with a household income lower than £40,000, the maximum LTI is 4.45.
Shekina is the deputy editor at Mortgage Solutions and commercial editor at Mortgage Solutions and Specialist Lending Solutions. She has nearly eight years of experience in the B2B publishing market, having previously covered the hospitality, retail, pet, accounting and jewellery sectors.
Shekina has worked for Mortgage Solutions and Specialist Lending Solutions for almost five years. Here, she covers the market’s breaking news stories, engages with professionals in the sector, and oversees any commercially agreed content in partnership with mortgage-related companies.
This includes presenting webinars and hosting roundtable discussions on developing themes in the mortgage sector.
She is an NCTJ-trained journalist and was nominated for the Headline Money Awards Mortgage Journalist of the Year in 2021.
In her spare time, Shekina likes to read, travel, listen to music and socialise with friends.
She currently reports on current events in the mortgage market and liaises with financial clients to produce sponsored content.
Follow her on Twitter at @ShekinaMS
