13 March 2017
Leeds Building Society is adjusting its LTI (loan to income) criteria for some borrowers.
Regulatory changes by the Bank of England have given lenders more flexibility to cope with fluctuations in business volumes.
In future, they will be permitted to monitor and report their LTI ratios quarterly on a rolling 12-month basis, rather than by individual quarter.
The Society has responded to this change by confirming it will now lend up to 4.75x LTI for borrowers wanting to move home or remortgage, up to 85% LTV (loan to value).
“The changes agreed by the regulator will give lenders more flexibility in managing their business flows over a longer period,” said Jaedon Green, Leeds Building Society’s Director of Product and Distribution.“It’s good news for borrowers and brokers and we expect the changes will enable us to help more people have the home they want.“As a responsible lender, we will continue to assess all mortgage applications on affordability.“This prudent approach is supported by our decision to lend at higher LTI, with an LTV limit of 85%, to borrowers who already have a mortgage and can demonstrate previous payment history.”