Barclays has announced a major update to its affordability policy, increasing its maximum residential loan-to-income (LTI) multiple from 5.5x to 6x. This change is significant for borrowers who need a higher income stretch to secure the mortgage they want, especially in a market where affordability continues to challenge homebuyers across the UK.
With ever rising house prices and tighter mortgage affordability rules across many lenders, this update puts Barclays right at the forefront of the more flexible high-street lenders when it comes to income multiples. In this article, we will break down what this means for borrowers, who qualifies, and how this compares to the wider market.
Why Barclays’ Increased LTI Matters
Mortgage affordability has been a growing concern in the UK, particularly as the average loan-to-income multiple sits around 4.49x with most mainstream lenders. While some lenders offer higher multiples for certain professions or under specific schemes, 6x income is typically reserved for specialist lenders, high earners, or professional mortgage products. So if you are an average person earning £35,000 a year…a maximum mortgage of £157,150 is not going to get you very far!
By increasing its maximum residential LTI to 6x, Barclays is opening the door for more borrowers, especially dual-income households, to access larger loan sizes without moving into the specialist market. This aligns with a broader trend of major lenders revisiting affordability models that we have previously reported on, as the market stabilises following recent rate volatility.
Who Can Access Barclays’ New 6x Loan-to-Income Multiple?
Barclays is not offering the 6x multiple universally. Borrowers must meet all of the following criteria:
- A Combined Household Income of £75,000 or More
This includes:
- Basic employed income
- Sustainable allowances
- Self-employed income where affordability can be evidenced
This threshold allows a wider pool of buyers to benefit, not just high-earning professionals.
- The Mortgage Must Be on Capital & Interest Repayment
Interest-only mortgages do not qualify for 6x income.
Barclays requires the loan to be structured as a full repayment mortgage. This ensures:
- A clear repayment strategy
- Lower lender risk
- Greater long-term affordability for the borrower
- Maximum Loan-to-Value of 85%
Borrowers must have a deposit of 15% or more.
How This Compares to the Wider UK Mortgage Market
Most high-street lenders still cap their income multiples at 4.49x for standard residential cases and 4.75x – 5.5x for higher earners or profession-based schemes. Enhanced 6x income multiples are typically only available when income exceeds £75k–£100k, the borrower fits a specific profile (e.g., accountant, doctor, solicitor)m the LTV is moderate (e.g. 60% LTV or lower). However, there has been an increasing amount of high-street lenders really pushing to increase their affordability limits in recent months.
Barclays stepping up to a 6x general income multiple for qualifying applicants makes it one of the more competitive lenders for borrowers needing extra borrowing power.
What This Means for Homebuyers and Remortgage Clients
This update, of course, may benefit first-time buyers struggling with affordability. A higher income multiple can significantly increase borrowing potential and open up access to homes that were previously out of reach.
It could also obviously help home movers looking to upsize. Rising property prices often outpace income growth, making 6x income particularly useful for families upgrading to a larger home.
Remortgagers who need a higher balance could also benefit. For example, people consolidating debt or restructuring their mortgage through a remortgage may now fit within affordability where they didn’t before.
Example: How 6x Income Changes Borrowing Potential
For a household earning £80,000 (potentially a couple earning £40,000 each):
- At 4.49x income approx. £359,200 borrowing
- At 5.5x income approx. £440,000 borrowing
- At 6x income approx. £480,000 borrowing
That’s a £120,000 increase compared to the typical market average multiple.
Responsible Lending Still Applies
It is very important to remember that applying for a 6x income multiple does not automatically guarantee an acceptance. Barclays will still carry out full mortgage affordability assessments, credit checks, outgoings analysis, stress testing, and more to make sure that they, as a lender, are protected. The enhanced multiple simply increases the maximum potential loan. Affordability still needs to stack up under stress-tested rates.
Will This Affect Barclays’ Position in the Market?
Yes…positively. Increasing LTI to 6x makes Barclays more competitive, especially for higher-income households, young professionals, joint applicants with strong earnings, and borrowers with good credit This could shift application traffic toward Barclays, particularly from lenders who remain, shall we say, more rigid with income caps.
Is a 6x Income Mortgage Right For Me?
It depends. A higher income multiple can be beneficial, but it also means that you will have higher monthly repayments, more financial pressure if circumstances change, and stricter affordability tests.
You should always make sure that mortgage affordability is realistic, not just on paper but in real life. Speaking with a mortgage advisor like ourselves at Oportfolio Mortgages is the safest way to understand whether a 6x mortgage is appropriate based on your income, expenses, and long-term plans.
Speak To a Mortgage Advisor
Barclays’ move to increase its maximum loan-to-income to 6x is a welcome update for many buyers facing affordability challenges. With competitive lending criteria and a focus on responsible lending, this change provides greater flexibility at a time when the market needs it.
For borrowers with strong income and a sufficient deposit, this could be an excellent opportunity to access the borrowing power they need to move forward with their homeownership plans. Speak to an expert mortgage advisor today by contacting our team at Oportfolio Mortgages. We are here to help.
