Tipton & Coseley updates standard LTI to 5x income

Tipton & Coseley Building Society has updated its standard loan to income (LTI) ratio, enabling borrowers to access higher income multiples.

The Society is offering a standard LTI of five times income across its entire mortgage range up to 95% LTV with no minimum income requirement.

Stress tests have also been reviewed, meaning the Tipton will now base stress rates on the customer’s chosen mortgage product when assessing affordability.

For many applicants, the lender says this will ease the stress test and result in an improved affordability outcome.

By using its new affordability assessments, the Tipton estimates an application with a typical household income, and no other outstanding debts, could qualify for around £19,000 in additional borrowing.

Andy Millard (pictured), Tipton & Coseley Building Society’s head of intermediary distribution, 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.

“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 home ownership plans.

“In addition, we’ll always listen to what brokers tell us they need from a provider and develop our proposition accordingly.”