April Mortgages has increased its loan-to-income (LTI) caps, in an effort to provide further support to borrowers and brokers.
Higher loan-to-income caps are a tool to support borrowers in the face of continued house price growth.
According to the latest data from the Office for National Statistics (ONS), house prices increased by 1.1% in the 12 months to April 2024, with the average property costing £281,000.
By increasing the loan-to-income caps, April Mortgages aimed to work with borrowers who need to take on larger mortgages in order to fulfil their purchase or remortgage aspirations.
James Pagan (pictured), director of product and portfolio management at April Mortgages, said: “Higher loan-to-income caps will mean April Mortgages can deliver peace of mind to far more borrowers across the UK, particularly those looking for help to secure their first, second or dream home.
“Securing your rate for a period of five to 15 years makes it easier to budget, and removes the stress of having to deal with rate fluctuations every couple of years.
“Those with higher loan-to-values can then sit back and benefit from a rate that reduces with their LTV.”
He added: “I’m really excited to be bringing this exciting option to the market to help more people get on and keep moving up the housing ladder.
“The LTI cap improvements are the result of ongoing discussions with mortgage brokers, demonstrating our commitment to working closely with brokers and delivering the products and processes they and their clients most need.
“April Mortgages is listening and looking to bring the change the mortgage market needs.”
