Yorkshire Building Society has removed the minimum income requirement for first-time buyers to access mortgages up to 5.5 times their income, provided they meet all other lending and affordability criteria.
The change applies from today across the Society’s product range, excluding the £5k Deposit Mortgage, and is also available through its intermediary brand, Accord Mortgages.
Tom Simpson, managing director for homes at Yorkshire Building Society, said: “We were pleased earlier this year when the regulator granted lenders greater flexibility in setting higher LTI lending limits, a change we had long advocated.
“At that time, we committed to enhancing our support for borrowers in achieving their homeownership aspirations, and we are delivering on that promise.
“The move is designed to help first-time buyers who have good creditworthiness but are being held back by high house prices and cost-of-living pressures.
“We want to make sure those who can afford to borrow more, have the opportunity to do so.”
Under the updated criteria, at least one applicant on a joint application must be a first-time buyer.
Loans are available up to 95% loan-to-value and can be used for new-build properties, including flats.
Products in the Income Lifter range are included, and the changes apply to new applications only.
The announcement builds on earlier changes introduced in the summer, when Yorkshire Building Society became one of the first lenders to adopt the regulator’s increased flexibility over higher loan-to-income limits.
It launched its Income Lifter product at the time, offering access to loans up to 5.5 times income, subject to a minimum income of £50,000, and made the option available to first-time buyers at 95% LTV.
The lender said these enhancements have helped customers borrow an average of 15% more, equivalent to £37,000, towards their home purchase.
