April Mortgages will now allow people to borrow up to seven times their income on its longer-term mortgages.
This will be available up to 85% loan to value (LTV) to people with a household income of £50,000 or more and exclusively through mortgage brokers.
The higher income multiples will be open to first-time buyers, homemovers, employed and self-employed borrowers, with April Mortgages kept in line with its “mortgage more simple” ethos.
This will be available on 10- and 15-year term products.
For borrowers with a household of less than £50,000 or wanting a five-year fix, April Mortgages will lend up to six times income.
This higher loan-to-income (LTI) limit was launched last year.
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House purchase
| LTV | Household income greater than £50k and 10+y fix | Household income less than £50k and/or 5y fix |
| <=85% | 7 | 6 |
| >85%-<=90% | 6 | 5.5 |
| >90%-<=95% | 5.5 | 5 |
| >95% | 4.49 | 4.49 |
Remortgage
| Like-for-like remortgage or for home improvements
|
Like-for-like remortgage or for home improvements | Remortgage with additional borrowing (other purpose)
|
|
| Application income (total sole or joint) and product
|
>=£50k and 10+y fix |
<£50k and/or 5y fix |
Remortgage with additional borrowing (other purpose) |
| LTV <=85%
|
7 | 6 | 4.49
|
Rachael Hunnisett (pictured), director of mortgage distribution at April Mortgages, said: “Affordability remains one of the biggest challenges for borrowers, with wage growth struggling to keep pace with rising house prices, making homeownership feel increasingly out of reach for many. By increasing income multiples to up to 7x on our 10- and 15-year fixed products, we’re giving brokers the tools to open more doors for clients with strong incomes but limited borrowing capacity under lower LTI restrictions.
“Longer-term lending brings payment stability and peace of mind and we’ve taken it further by removing the usual trade-offs. Our products offer the security of a fixed rate, with the flexibility to move or repay without penalty, and rates that reduce as loan to value improves. It’s a pragmatic, future-facing, simple solution that gives advisers more room to manoeuvre in a market that demands it.”
James Pagan, director of product, portfolio and operations at April Mortgages, said: “Affordability challenges continue to dominate conversations between brokers and clients and we believe it’s time product design caught up with the structural realities of the housing market. Our new 7x LTI proposition is made possible by the inherent strengths of longer-term fixed rates, which offer both payment stability and reduced refinancing risk.
“By aligning a higher income multiple with the security of a 10- or 15-year fix, we’re enabling brokers to serve clients who have strong earning potential but are constrained by outdated lending limits. It’s a responsible, forward-looking product that reflects the way people live, work, and plan today and it adds a valuable option to the broker toolkit at a time it’s most needed.”
Earlier this year, Hunnisett spoke to Mortgage Solutions and said high-LTI lending needed to have guard rails, such as the certainty of longer-term fixed payments, to ensure the security of borrowers.
Meanwhile, regulators are currently consulting on raising the LTI flow lending cap to £150m so lenders that provide residential mortgages up to this level can lend more at high LTIs.
