Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
West Brom Building Society Raises LTI Limits for Buyers
West Brom Building Society has updated its loan-to-income (LTI) lending policy, aiming to help more first-time buyers and home movers access homeownership. The changes increase the maximum borrowing limits for applicants with higher incomes, subject to affordability and lending criteria.
Applicants earning more than £40,000 and up to £60,000 may now be able to borrow up to five times their income. For those earning above £60,000, borrowing could reach up to 5.75 times income. These adjustments are intended to address the gap between rising house prices and affordability constraints, particularly for customers who are financially capable but have struggled to meet previous lending thresholds.
The move is designed to support homeownership by increasing borrowing potential for some customers. West Brom Building Society states that affordability remains a significant challenge for buyers, and the updated policy aims to make a difference for those affected by current lending limits.
Letting agents and inventory clerks may see increased activity from buyers who can now access higher borrowing amounts, potentially leading to more transactions in the property market.
Source: Mortgage Strategy