The increases will apply to two categories of capital and interest borrower.
Borrowers applying for a 75 per cent loan to value (LTV) mortgage or lower who earn over £80,000 will be eligible for a loan to income (LTI) stretch of five times earnings, up from 4.75.
Those households earning £40,000 or less or borrowers applying for mortgage of more than 85 per cent LTV will be offered a loan to income multiple of 4.49 times earnings, up from 4.45.
Help to Buy and shared ownership applicants remain eligible for a maximum LTI of 4.5.
Borrowers applying for a mortgage of 75 per cent LTV with income of £80,000 or less and where there is any element of interest only are still be able to achieve a mortgage of 4.75 times their earnings.
Charlotte Harrison (pictured), Skipton’s head of mortgage products, said: “I’m delighted to announce further improvements to our lending policy that supports larger loans for our mortgage customers. Its pleasing to see a continued evolvement of our mortgage proposition that continues to reflect the needs of our borrowers.”
Skipton also returned to 95 per cent LTV lending this week after retreating from the highest LTV band at the start of the pandemic.
