Halifax has made changes to its loan to income (LTI) caps as part of changes to its affordability.
For applications where there is an element of self-employed income and the total income is more than £75,000, the LTI cap has risen to 5.5x income up from 4.49x income. This will apply to mortgages up to 75 per cent loan to value (LTV).
For loans between £500,000 and £750,000 from 85 to 95 per cent LTV, as well as loans between £750,000 and £1m from 75 to 85 per cent LTV, an LTI cap of 4x income will apply.
For other self-employed cases with a total income of less than £75,000, the LTI of 4.49x income will remain.
Borrowers with an income of less than £40,000 taking loans up to 95 per cent LTV, the LTI is 4.49x income.
Those with total incomes between £40,000 and £50,000 will be able to borrow up to 4.75x income up to 85 per cent LTV, and 4.49x income between 85 and 95 per cent LTV.
Borrowers earning between £50,000 and £75,000 in need of mortgages at an LTV up to 75 per cent can access loans up to 5x income.
An LTI cap of 5.5x income is available to borrowers earning between £75,000 and £125,000 up to 75 per cent LTV, as well as borrowers earning more than £125,000 up to 85 per cent LTV.
The changes apply to applications started from 10 January.
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
