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Nationwide raises LTI cap for existing borrowers

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  • 12/08/2022
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Nationwide will lend up to 5.5x loan to income (LTI) for certain categories of mortgages.

The building society said the higher cap, which came into force yesterday, applied to existing borrowers moving home and further advance or additional borrowing applications.

The previous cap was 4.49 times LTI.

Henry Jordan, director of mortgages at Nationwide Building Society, said: “Supporting our existing members is a key focus for us as a mutual, which is why we’re increasing the maximum loan-to-income for Nationwide mortgage members moving to a new home or improving their current one.”

Self-employed and equity share applications will continue to use the existing lower LTI caps, Nationwide said.

The lender said that additional borrowing as part of a subsequent application to repay unsecured or secured debt, except for equity share loans, would be subject to lower LTI caps as well. 

Nationwide introduced a 5.5x LTI cap at the start of the month for house purchase applications, where the total applicant income is more than £100,000 a year.

At the same time, the lender increased maximum loan sizes between 75 and 95 per cent loan to value (LTV) and for high earners on house purchase applications.

Nationwide said the £100,000 total income rule no longer applied to existing borrowers moving home.

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