The change was made in response to the Prudential Regulation Authority loosening its loan-to-income rules so 15% of new mortgages have to have an LTI below 4.5 over four quarters on a rolling basis.
Leeds Building Society has tweaked its max loan-to-income ratio to 4.75x to 85% loan-to-value.
The changefrom 4.5x was made in response to the Prudential Regulation Authority loosening its loan-to-income rules so a maximum of 15% of new mortgages can be over 4.5 LTI over four quarters on a rolling basis.
Previously lenders had to stay under every 15% quarter, with the PRA making the change to help firms deal with seasonal changes.
Martese Carton, Leeds Building Society’s head of intermediary distribution, said: “The changes agreed by the regulator will give lenders more flexibility in managing their business flows over a longer period.
“It’s good news for borrowers and brokers and we expect the changes will enable us to help more people have the home they want.
“As a responsible lender, we will continue to assess all mortgage applications on affordability.
“This prudent approach is supported by our decision to lend at higher LTI, with an LTV limit of 85%, to borrowers who already have a mortgage and can demonstrate previous payment history.”
