Nottingham increases single income multiple to four times income

Nottingham Building Society has increased its single income multiple to four times income and its maximum loan size for buy-to-let.

The income multiple has, from today, been increased from 3.75 times single income to four times single income. The joint multiplier remains at 3.75 times joint income.

The building society has also confirmed it is in the process of building an affordability model to replace income multiples in time for the implementation of the mortgage market review in April 2014.

It has also increased its maximum loan size for buy-to-let applications from £250,000 to £350,000

Nottingham Building Society mortgage product manager Martyn Bell says: “We have been talking to a number of our key intermediary contacts and customers and have received some very positive feedback for both our service and products, in particular about how some building societies and niche lenders are really helping people get amortgage whereas some of the high street banks seem more reluctant to lend.

“Here at the Nottingham we are in the process of building an affordability model which should replace our income multiple calculation in 2014 with the introduction of MMR. But to make us even easier to use in the meantime, we decided that we should immediately increase our single multiple calculation to four times income to allow more customers to qualify.”