Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Number of Lenders Offering Six Times LTI Quadruples in 12 Months

The number of mortgage lenders willing to lend at six times income has quadrupled over the past year, according to Mortgage Broker Tools (MBT). This follows changes by the Financial Policy Committee (FPC) to how high-loan-to-income (LTI) flow limits apply to individual lenders.

Eighteen lenders increased their maximum LTI multiple after the FPC's adjustment. As a result, 20 lenders now offer an LTI of six times or above, including major names such as Barclays, NatWest, HSBC, Nationwide, and Leeds Building Society, all of whom crossed the six times threshold in the last year.

The average borrower income has risen only marginally, but the average LTI sought has increased from 3.8 times to four times. The proportion of cases requesting five times or above rose from 11% to 15%. The average maximum loan offered via MBT increased from £270,000 to £330,000.

The proportion of cases with no affordable or eligible lender fell from 14% to 9%. However, for borrowers specifically seeking six times income, 61% still could not find an eligible lender, though this is a significant improvement from 86% a year ago.

The availability of six times LTI remains conditional, with outcomes varying based on income, loan-to-value (LTV) restrictions, and borrower-type criteria.

These developments may be relevant for letting agents and inventory clerks monitoring changes in mortgage lending, as shifts in borrowing capacity can influence demand for rental properties and the wider UK property market.