Nationwide Building Society has announced it will be increasing the maximum loan-to-income (LTI) on like-for-like remortgages from today. 

For all remortgage applications that don’t require any additional borrowing, Nationwide is increasing the maximum LTI from 4.49x to 6.5x the income up to the existing 90% loan-to-value (LTV) limit. 

Applications will continue to be subject to Nationwide’s affordability assessment.

This will be with the lower stress rate for like-for-like remortgages, following the reduction made in January 2020 from the previous 3% above the standard mortgage rate. 

The society said the change is aimed at supporting borrowers who are either looking to remortgage to get a better rate or those who are on a variable rate deal and want to fix their mortgage payments.

Nationwide Building Society director mortgages Henry Jordan says: “The remortgage market continues to remain strong as people look to try and counter the rising cost of living by securing a better rate on their mortgage or fixing their mortgage payments.”

“By increasing the maximum loan-to-income, we are giving people who don’t need any additional borrowing more opportunity to change lender and save money, and potentially helping those mortgage prisoners who have been unable to remortgage to a better deal until now,” Jordan adds.