A major high street bank has increased its income multiples from 5 to 5.5x last weekend.
The move shows a relaxation in criteria was due to the high level of competition in the mortgage market and there are suggestions this could lead to more lenders become flexible with their own income multiples.
The change is good news for the higher earners for borrowers who meet the basic threshold of £75,000 for individuals or £100,000 for joint applicants. These premier borrowers will be able to achieve up to 5.5x their income subject to underwriting.
However since the Mortgage Market Review two years ago, an individual assessment of affordability plays a much bigger role in the overall assessment of affordability and those who have large outgoings including school fees and childcare might still not be able to achieve the highest income multiples.