Halifax raises maximum LTI to 5.5x for high earners


Halifax is increasing its maximum loan-to-income multiple from 5x earnings to 5.5x from Thursday.

The higher LTI multiple will apply to those earning over £75,000 and borrowing up to £1m at less than 75% LTV.

However, for the self-employed or anyone using an affordable housing program, the LTI multiple remains capped at 4.49 times earnings.

Halifax is also making the following changes to its LTI structure:

  • Borrowers earning less than £40,000 will now be subject to an LTI cap of 4.49x income, whereas previously this only applied to those earning less than £30,000.
  • For borrowers earning over £75,000 and where their LTV is between 75.01% and 85% and the loan size is between £750,000 and £1 million, the maximum LTI is increased from 4x to 4, 49x.
  • For borrowers with an income over £75,000 and an LTV between 85.01% and 95% and a loan amount between £500,000 and £750,000, the maximum LTI is increased by 4x to 4.49x.

Aaron Strutt, Chief Product and Communications Officer of Trinity Financial, says, “Many borrowers are unaware that lenders offer more generous income multiples, especially to higher income earners.

“They approach their bank or building society and assume they get the most generous loan based on their income and overall affordability. “More and more lenders are offering more than five times mortgage pay to help borrowers secure enough mortgages to buy the properties they want.

“Without these products, they may well struggle to get on the property ladder, especially if they have credit commitments or children.”

Carl Summers Financial Services financial adviser Scott Taylor-Barr adds: “While any improvement is always welcome, I’m not 100 per cent sure it’s people with incomes over £75,000 who really need additional help.”

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