West Brom Building Society has announced changes to its loan-to-income lending policy aimed at helping more first-time buyers and home movers access homeownership, as affordability pressures continue to challenge prospective customers.
The updated approach will help more customers borrow at higher loan-to-income (LTI) multiples where it is affordable. Applicants earning more than £40,000 and up to £60,000 could access borrowing of up to five times their income, while those earning above £60,000 may be able to borrow up to 5.75 times income, subject to affordability and lending criteria.
The move is designed to help bridge the gap between rising house prices and affordability constraints, particularly for customers who may be financially capable but are struggling to meet current lending thresholds.
It also reflects how lenders are continuing to review their approach to make sure it works for a wider range of customers, while maintaining responsible lending.
John Philips, Product Manager at West Brom Building Society, said: “Affordability remains one of the biggest challenges to buying a home. As a mutual, we’re focused on supporting homeownership by tackling real affordability challenges. By increasing borrowing potential by up to 15% for some customers, we hope to make a real difference.”
The West Brom also continues to highlight the importance of advice in helping customers understand their options and make informed decisions at the start of their homeownership journey.
