Mortgage Strategy - Aldermore Bank latest to introduce LTI cap
Aldermore Bank has become the latest lender to introduce a loan-to-income cap in the wake of new mortgage constraints from the Bank of England.
The lender this week imposed a maximum LTI ratio of 4.5 times income for loans above 85 per cent LTV, including products through the Help to Buy mortgage guarantee scheme, whereas the maximum LTI below 85 per cent LTV is 5 times income.
Trinity Financial product and communications manager Aaron Strutt says: “Lenders have been tightening up over the last few weeks and this is another example of that.
“This is the way the market seems to be going at the moment, with tightened criteria on affordability as a result of MMR, and then we’ve had the new guidance from the Bank of England just three months later. Aldermore is obviously the latest in a list of lenders to introduce such measures and in all likeliness they won’t be the last.”
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