For those with an income under £40,000 looking for deals under 80% loan to value (LTV), the LTI limit is 4.75 times income, and for over 80% LTV, the LTI limit stands at 4.49 times income.
Going up to an income between £40,000 and £600,000, beneath 80% LTV, the LTI limit is 5.5 times income, and over 80% LTV, the LTI limit is five times income.
The above LTI limits are all up from a 4.49 times LTI limit across all LTV bands.
For eligible customers with an income over £60,000, at less than 80% LTV, the LTI limit is six times income. Over 80% LTV, the limit stands at 5.5 times income. The LTI limit was previously 5.5 times income across all LTV bands.
Aldermore said the changes mean customers with a household income of £70,000 could now access up to £35,000 in additional borrowing if they have a deposit of 20% or more.
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A family with a combined income of £45,000 could access around £20,000 more than before, even with a 5% deposit.
Aldermore has also launched limited-edition residential owner-occupier deals. This includes a trio of Level 1 two-year fixed rates and a duo of deals at Level 2 that are two-year fixed rates.
On the Level 1 side, this includes a two-year fixed rate at 85% LTV with no fee at 5.94%. At 90% LTV, the rate goes up to 5.99%, and at 95% LTV, pricing is set at 6.29%.
At Level 2, Aldermore has added limited-edition two-year fixed rates at 85% and 95% LTV with no fee at 6.48% and 6.64%.
Jon Cooper (pictured), director of mortgages at Aldermore, said: “Aldermore backs people who want to make things happen, whether it’s buying your first home, moving up the ladder, or investing in property. We’re reigniting our residential mortgage proposition, and brokers will see targeted enhancements to our owner-occupier range in the months ahead.
“I’m especially pleased to announce higher LTI limits. For many clients, this could be the difference between securing their home or missing out, and this offers a real opportunity for brokers to deliver more for their customers.”
The Financial Conduct Authority’s (FCA’s) CEO Nikhil Rathi said in a speech yesterday that the Prudential Regulatory Authority (PRA) and FCA’s changes to recommendations for high-LTI lending have supported up to 36,000 more first-time buyers per year.
