Gen H has implemented sweeping changes to its loan-to-income (LTI) limits, in a bid to enable buyers to borrow more.
Effective immediately, self-employed applicants can now borrow up to 5.5 times their income and loans over 85% loan-to-value (LTV) will no longer be limited to 4.49 times applicant income.
In addition, the threshold for the gross income-based 4.49x LTI cap will be reduced from £50,000 to £40,000.
These changes enable Gen H to provide the necessary funding to up to 12% more customers, with maximum loan amounts increasing by as much as 22%.
Pete Dockar, chief commercial officer at Gen H, said: “I’m delighted to announce these positive changes to our loan-to-income multiples policy today.
“Increasing our LTI limits for self-employed applicants, those with small deposits, and those on average household incomes will allow us to support exactly the people we wish to reach: those who, without Gen H, may not have found a path to homeownership.
“These buyers are often underserved by existing mortgage products and the high street, so I hope the implementation of these new rules makes our stance very clear: we’ll take every chance we get to create more incremental homeowners.”
