In an exciting development for prospective homebuyers and existing mortgage holders, TSB has announced significant improvements to its lending criteria. Effective from the 13th of July 2023, the changes aim to enhance affordability and accessibility for borrowers. These updates include an increase in the maximum residential income multiple and an expansion of the maximum loan-to-value (LTV) for new build main residence houses and bungalows.
Positive Changes to TSB Lending Criteria
One of the key highlights of TSB’s revised lending criteria is the increase in the maximum residential income multiple. Borrowers will now be able to multiply their income by up to 5.5 times when applying for a residential mortgage. This change offers greater flexibility and increased borrowing capacity for those looking to purchase a home. By raising the income multiple, TSB aims to accommodate a wider range of borrowers and provide more support to individuals and families aspiring to step onto the property ladder.
Additionally, TSB has adjusted its loan-to-value limits for new build main residence properties. The maximum LTV for these types of houses and bungalows has been increased from 85% to 90%. This means that borrowers will now have the option to secure a mortgage with a smaller deposit, enabling them to purchase their dream home sooner. By expanding the maximum LTV, this could be a very positive move for the new build housing market.
Revised Income Multiples For Employed Higher Earners
Furthermore, TSB has revised its loan-to-income multiples specifically for employed customers earning over £100,000 per application. Borrowers falling within this category can now multiply their income by 5.5 times when the loan-to-value is below 85%. For loan-to-value ratios exceeding 85%, the maximum loan-to-income multiple will be 4.49 times income. This change will provide increased flexibility to high-earning individuals, ensuring their mortgage borrowing potential aligns with their income levels.
Who Do These Changes Benefit?
These updates to TSB’s lending criteria are set to benefit both new and existing borrowers. Prospective homebuyers will have more options available to them, thanks to the increased maximum residential income multiple and higher loan-to-value for new build main residences. Existing borrowers may find these changes advantageous if they wish to remortgage or explore alternative lending options with the help of their mortgage advisor.
The expansion of the maximum LTV for new build main residence houses and bungalows is particularly timely, considering the increased demand for new homes. With the property market continuously evolving, TSB recognises the importance of adjusting lending criteria to address the changing landscape. By enabling borrowers to secure mortgages with a smaller deposit, TSB hopes to facilitate a smoother home-buying process and contribute to the growth of the housing market.
Speak To a Mortgage Advisor About TSB Changes To Lending Criteria
Whether you have a TSB mortgage already, or you like the sound of their new criteria changes, getting advice from a mortgage broker is essential. A mortgage advisor will be able to guide you through the mortgage process and help you to get the best possible deal for your circumstances. Call our team at Oportfolio today for a free initial mortgage consultation.