The Cambridge Building Society has introduced more generous lending criteria that will see it advancing up to five times a borrower’s income.
However these relaxed income limits will not apply to all homebuyers. To qualify applicants need a minimum income of £60,000, and at least a 20 per cent deposit.
Cambridge Building Society says these income limit changes would be valid across all residential purchase products, but it will particularly support so-called ‘second steppers’ moving up the housing ladder.
The society says this change is in response to rising house prices, particularly within its core lending region, which has created affordability issues for many home movers and buyers.
The Cambridge’s head of lending Tracy Simpson says: “We recognise the challenges homebuyers looking to move up the housing ladder are facing, and have been looking at ways to help them.
“Their needs are different to those of first-time buyers and their often higher income combined with the experience of maintaining a mortgage means we can be more flexible with how much we can lend to them.”
Simpson adds: “House price growth in our core lending area of the East of England remains strong, and family homes in particular command a premium.”
The latest UK House Price Index from the Office of National Statistics shows that average property in the region is £290,341, with prices rising by 5.2 per cent over the past year – outstripping house prices rises in both London and the South East.
She adds: “Our flexible underwriting approach alongside changes such as this gives intermediaries and their clients another reason to consider us.”