Loan-to-income mortgage rules loosened – but lenders want more
Original Article Summary
Regulators have opted to remove mortgage loan-to-income limits for lenders with a residential loan book of less than £150 million – meaning more smaller lenders don’t have to abide by the rules. The LTI flow limit means the number of mortgage loans at an LTI ratio of over 4.5 times cannot make up more than […] The post Loan-to-income mortgage rules loosened – but lenders want more appeared first on PropertyWire.
PropMatch Curated Analysis
Regulators have raised the threshold for loan-to-income mortgage limits from £100m to £150m, exempting around 80 smaller lenders from the 15% cap on high LTI lending. Industry bodies are calling for further relaxation to support more borrowers.
Investor Relevance
Affects financing options for property investors using smaller lenders who may now access higher LTI mortgages more easily. Could improve acquisition opportunities for leveraged investors, particularly first-time buyers and those with higher income multiples.
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