Tipton & Coseley Building Society has increased its standard loan to income (LTI) ratio, allowing borrowers to access mortgage deals worth up to five times their income.
The change applies to the whole mortgage range, including products up to 95% loan-to-value (LTV), and there is no minimum income requirement.
Additionally, affordability stress tests have been updated.
The society will now use the stress rate from the customer’s chosen mortgage product instead of a set benchmark.
Tipton & Coseley said this means many applicants could see an improved affordability outcome.
Andy Millard, head of intermediary distribution at Tipton & Coseley Building Society, said: “These important changes will deliver a more tailored approach to affordability assessments, with full consideration of each borrower’s individual circumstances.
“It creates scope for us to increase the support we offer to brokers and applicants, while still lending responsibly.”
Using the new affordability model, Tipton & Coseley estimated a typical household income with no other outstanding debts could qualify for around £19,000 in extra borrowing.
Millard added: “Our purpose is to help our customers achieve their most important financial goals and often that includes securing a home of their own.
“Whether it’s a first time buyer, or someone needing a lending solution later in life, we want to remove any unnecessary barriers and help even more customers with their homeownership plans.
“In addition, we’ll always listen to what brokers tell us they need from a provider and develop our proposition accordingly.”
