Longer-term lender, April Mortgages, is now offering eligible borrowers up to seven times income on its 10 and 15-year fixed rate products.
The proposition, available exclusively through intermediaries, is designed to support brokers working with clients facing ongoing affordability challenges as wage growth struggles to compete with rising house prices.
The increased LTI is available to applicants with a household income of £50,000 or more, offering up to 85% LTV. Loan sizes range from £50,000 to £1 million, with exceptions considered on a case-by-case basis up to £2 million.
The maximum term is 40 years and the product is available on residential purchase and remortgage applications (excluding new build and buy-to-let) across England and Wales. Borrowers must be under 80 years of age at the end of term.
At seven times income and 80% LTV over a 36 year term, a household earning £60,000 annually could access a mortgage of nearly £420,000 with April – significantly more than the standard 4.5x cap typically applied by most high street lenders.
Other features in April's range include no early repayment charges when borrowers move home or repay from their own funds, uncapped overpayments, and automatic rate reductions as borrowers pay down capital and reduce their loan-to-value ratio.
James Pagan (pictured), director of product, portfolio and operation at April Mortgages, commented: “Affordability continues to be one of the biggest barriers for borrowers, as wage growth struggles to keep pace with rising house prices. For many, homeownership feels increasingly out of reach. By raising income multiples to up to 7x on our 10 and 15-year fixed rate products, we’re giving brokers a powerful tool to help clients with strong earnings but limited borrowing options under standard LTI caps.
"Longer-term lending offers clients the stability of predictable payments and peace of mind - but we’ve gone a step further by removing the usual compromises. Our products combine the certainty of a fixed rate with the freedom to move or repay early without penalties, and rates that automatically reduce as the loan-to-value improves.
"It’s a pragmatic, future-ready solution that gives advisers greater flexibility at a time when the market needs it most.”
