Hinckley & Rugby rethinks multiples

Hinckley & Rugby Building Society has changed its maximum income multiple to four times income for single and joint applications.

The new multiples apply across all LTV bands. Previously, income multiples were capped at 3.5 times single or 2.9 times joint income for applications up to 80 per cent LTV, or 3.25 times single and 2.75 times joint income above 80 per cent LTV.

Applicants that meet the income multiple criteria will then be subject to an affordability assessment.

Hinckley & Rugby chief executive Chris White says: “Increasing our income multiples to four times will make our competitive mortgages available to more borrowers and for a wider range of property values.

“We will, of course, retain our guiding principle of making responsible lending decisions based on people’s ability to afford repayments now and in future.”