Barclays has loosened its loan-to-income criteria for consumers taking out loans over £300,000.
Last week, the lender increased its maximum LTI for loans over £300,000 to five times income. Previously, Barclays had a 4.5 times income cap on standard lending.
It has also changed its maximum LTI for borrowing less than £300,000, where the borrower is taking out a loan over 85 per cent LTV and has income over £50,000, to 4.49 times income, down slightly from 4.5 times income.
Barclays has maintained its four times income cap for borrowers taking out a loan with an LTV of more than 85 per cent and with an income of less than £50,000.
The maximum LTI for Help to Buy loans remains at 4.4 times income.
A spokesman says: “Following a review of our income multiples lending criteria, as of 31 March 2015, our loan-to-income cap on residential applications will increase to a maximum of five times for all loans above £300,000.
“For standard lending below this level, a maximum cap of 4.49 times will apply. This change is part of our ongoing business planning and something we always keep under review.”