TSB increases mortgage income multiple to 5.5 times salary for buyers purchasing new build properties

by Aaron Strutt

Feb 13 2025

TSB for Intermediaries has increased the income multiple it uses to calculate mortgage loan sizes for higher earners buying newly built properties.

If an employed applicant earning above £75,000 per annum purchases a new-build property with a 10% deposit, they could potentially borrow TSB's maximum loan-to-income of 5.50 times income. Providing they have a good credit score.

TSB says the bank is "supporting more customers in purchasing energy-efficient properties that will have lower running costs."

The maximum TSB will currently consider lending on new build properties is:

• Houses and Bungalows - 10% deposit required
• Flats and Maisonettes - 15% deposit required
• Second Home/Holiday Homes – 25% deposit required

How does TSB define a new build property?

TSB classes an initial occupancy/new build property as any property being occupied and/or sold for the first time on the open market in its current state including converted and refurbished properties. These will fall into one of the following categories:

• Newly built property.
• Refurbished property i.e. refurbishment, of an existing residential property. Typically, a renovated property will be considered as initial occupancy where the vendor is a builder/developer and the property has been vacated to allow for the refurbishment to be undertaken.
• Newly converted property i.e. conversion of an existing non residential property, e.g. an existing mill converted into flats.
• A property, either new or converted (as above), that has been tenanted and is now offered for sale by the builder/developer.
• Properties built within the last 10 years must be subject to one of the following building control and monitoring requirements:  Building Standards Indemnity Scheme from a warranty provider accepted by TSB.

Aaron Strutt, product director at Trinity Financial, says, “It is pretty unusual for a lender to launch a more generous income multiple, specifically for new-build properties, but they are doing more to increase their lending volumes.

"TSB has also reduced the income threshold to a maximum of 5.50 times income, to £75,000 from £100,000 for it mainstream residential lending."

TSB's debt to income

When determining affordability, applications will be declined for a TSB mortgage when the credit score confirms the applicant has: Opened three or more accounts e.g. credit card or personal loan in the last six months. Their application will also be declined if unsecured commitment balances have increased by more than 20% in the last three months.

Call Trinity Financial on 020 7016 0790 to secure a new build mortgage, book a consultation, or complete our mortgage questionnaire. 

The information contained within was correct at the time of publication but is subject to change.

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