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April Mortgages to accept up to six times earnings

Samantha Partington
Written By:
Posted:
July 23, 2024
Updated:
July 23, 2024

April Mortgages has increased its loan-to-income (LTI) calculation to six times earnings for all borrowers.

The LTI uplift, previously set at four-and-a-half times income or five times for like-for-like remortgages, applies to both sole and joint incomes.

The newly launched lender, which specialises in long-term fixed rates, has increased its LTI cap for first-time buyers, homemovers and like-for-like remortgage borrowers.

The lender said the change had been made following feedback from mortgage brokers on the products they need to support their buyers.

April, which is backed by a Dutch pension fund, soft launched its remortgage product with adviser networks HLP and Stonebridge in November last year. The lender’s objective is to move the UK mortgage market away from two-year fixed rates in favour of five- to-15-year deals, which it says offer borrowers long-term stability. The products are available up to 95% loan to value (LTV).

Since then, it has widened its distribution and expanded into the purchase market.

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The lender offers brokers trail fees and no early repayment charge (ERC) fixed rates.

A report from the Building Societies Association into current lending policies and regulation has called for more to be done to help first-time buyers get onto the housing ladder, including holding a review of the 15% cap on lending above four-and-a-half times income.

James Pagan (pictured), director of product and portfolio management at April Mortgages, said: “Higher loan-to-income caps will mean April Mortgages can deliver peace of mind to far more borrowers across the UK, particularly those looking for help to secure their first, second or dream home.

“I’m really excited to be bringing this exciting option to the market to help more people get on and keep moving up the housing ladder.

“April Mortgages is listening and looking to bring the change the mortgage market needs.”